Buthelezi ‘ignored’ over R1bn in financial irregularities at Prasa

Deputy Finance Minister Sfiso Buthelezi has been accused of turning a blind eye to wasteful expenditure and financial irregularities amounting to R1 billion in his previous job as chairperson of Prasa.

Findings of forensic investigations conducted last year by at least 10 auditing firms into Prasa contracts dating as far back as 2010 suggested that, out of over 200 contracts, only 13 were legitimately awarded between 2012 and 2015, the Sunday Times has reported.

After reviewing one contract worth R15.1 million, Deloitte & Touche recommended that the board at the time be held accountable after “failing to ensure reasonable protection of procurement and financial records”.

This after the board reportedly could not provide documents relating to payments to a supplier that it had appointed irregularly.

Wasteful expenditure is further detailed in 11 contracts worth more than R86 million. The board was found to have violated its fiduciary and general responsibilities, the publication further reports.

Another company, contracted in 2012 for three years to clean and maintain railway stations, was reportedly overpaid by R18.3 million from a contract that was valued at R37.9 million.

It was further recommended that Prasa recover about R21.3 million from another company after auditors could not find supporting documents relating to the appointment of the company or invoices for the payments.

Buthelezi had not responded to the allegations.

Last week, reports claimed that the deputy minister had benefited from tenders during his time at Prasa. Buthelezi said, however, that he was dismayed by the report, denying he had benefited.

“The Deputy Minister would like to once again reiterate and place it on the record that he has never used his position … to influence procurement decisions in favour of any company associated with him or his family,” Buthelezi’s office said in a statement.