Municipal CFO of Lesedi (LLM) could be forced to pay back salary

According to a publication in the City Press on December 11, Gobodo Forensic Investigative Accounting has recommended LLM to consider recovering the more than R1,2 million per annum paid to Mpele since his appointment.

HEIDELBERG – Lesedi Local Municipality (LLM) has reportedly been advised to consider reclaiming money paid to Paul Mpele – a chief financial officer (CFO) and former municipal manager, because he allegedly misrepresented his qualifications.

This according to a publication in the City Press on December 11, stating that a report by Gobodo Forensic Investigative Accounting has recommended LLM to consider recovering the more than R1,2 million per annum paid to Mpele since his appointment in May 2016.

Gobodo said a legal firm should be able to properly advise the Heidelberg municipality on the feasibility of this move.

The 21-page draft report (released on November 29) described Mpele’s conduct as grossly dishonest in that at the time of applying for the position of CFO at the municipality, he did not have the qualifications that he claimed to have in support of his application.

Further recommendations include that the municipality consider instituting disciplinary action against him, as well as “registering a criminal case for possible fraud in relation to his misrepresentation of his qualifications in his CV submitted to the municipality”.

Following an investigation earlier last month, Gobodo concluded that in his CV submitted to LLM for the position of CFO in July 2015,“Mpele factually misrepresented having a B.Com. Accounting degree from the University of Durban-Westville, while in fact he had only attained a B.Com.”.

Gobodo found that he did not have “an honours degree in Generally Recognised Accounting Practices (GRAP) from the University of Stellenbosch”.

Mpele did an executive short course at Stellenbosch, which has a National Qualifications Framework (NQF) recognition of level 8. He argued that it was the equivalent of an honours degree. The firm also found that he did not hold membership of the Institute of Internal Auditors South Africa, which would have entitled him to use the title of General Internal Auditor (GIA).

The firm also found that he has not been a registered accounting officer with the Institute of Accounting and Commerce since 2008 and could therefore not claim in 2015 to have been a registered accounting officer.

According to the report, Mpele had told Gobodo that the noted factual misrepresentations were “not done intentionally or deliberately but as a result of his own interpretation or understanding”.

However, Gobodo said his explanation appeared improbable or implausible. Gobodo said Mpele “conceded that he has not been conferred a B.Com. Accounting degree by the University of Durban-Westville”. But he “claimed such on the basis of having attained a BCom at the University of Durban-Westville, which, if taken together with his Accounting III modules attained at the University of Free State, in his view equate to or are equivalent to a B.Com. Accounting degree”.

He conceded, however, “that neither UDW nor UFS has conferred such a degree on him”.

The report said that Mpele, whilst agreeing that the actual certificate issued by the University of Stellenbosch does not record such to be an honours degree or certificate, “contends that he recorded such as an honours degree based on the fact that the course is recognised as an NQF level 8 qualification”
According to the report, he also conceded “that he was at the time of applying for the position of CFO not an accredited GIA nor a registered accounting officer, and that his only reason for referencing said professional membership was to evidence that he had held such designations or membership in the past”.

Gobodo said that whilst it was not disputed that Mpele may have met the minimum requirements for the position as advertised, “that, but for his misrepresentation with regard to the B.Com. Accounting degree, he would not have been shortlisted”.

The ANC in Sedibeng has decided that the executive mayor of LLM Lerato Maloka, had mishandled the issue and has recommended that the mayor and the chief whip “be redeployed with immediate effect to stabilise the municipality”.

Mpele told City Press that when he first applied for the post, the minimum qualification and experience required for the CFO of a Grade 4/5 municipality was a B.Com. degree or a degree in finance and that a CA qualification would be an added advantage.

He claims the attacks on his credibility “stem from a number of irregular, inappropriate and illegal advances from the time I was appointed CFO at Lesedi municipality”.
He further alleged that several ANC and opposition DA and EFF councillors “constantly pressurised” him to “dispense personal favours to themselves or their connections, which I consistently turned down”.

According to City Press, Maloka said the report was inconclusive and the recommendations flawed.

She was unsure about its status, “because they were not clear during a council meeting last week whether it was a draft or final, and had not subjected Mpele’s qualifications to SAQA’s verdict as per the council’s request”.

She also questioned the procedure followed and the reasons why Gobodo “refused to indemnify or assure the council of their work should it fall short”.

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