A BLOCKBUSTER investigation report revealed that the KwaZulu-Natal government misappropriated about R30-million of Covid-19 funds through irregular expenditure and alleged “collusion”.
“At a time when we should be focusing all our energies on defeating this invisible enemy, we deeply regret that we have to be sidetracked by such matters,” said Sihle Zikala, KZN Premier.
Zikalala was speaking at the eThekwini Disaster Management Centre where he presented summaries of the forensic report.
The forensic report is yet to be released for public viewing.
The investigation started in April after allegations that Covid-19 emergency funds were being abused by government officials.
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The investigation focused on two matters of alleged irregular procurement: Personal Protective Equipment (PPE) and blankets in the Department of Social Development.
With regards to the procurement of blankets, Zikalala said the report showed there was no verifiable need for the blankets.
“The investigation has revealed that there was no record provided which proved that the decision to procure the blankets was informed by a needs analysis,” said Zikalala.
Zikalala said only 4 982 blankets were distributed out of the 48 000 that were purchased.
The remaining blankets are said to either be rotting in various storage centres or are unaccounted.
This resulted in a loss of R15 808 000 to the KZN government.
In terms of PPE, Zikalala said the report found that the Department of Social Development paid inflated prices for the products.
It also found that some service providers invoiced the department for services or goods not yet rendered.
He said this amounted to an irregular expenditure of R13 630 229.
The Department of Education was unscathed by a separate analysis report compiled within the department, according to Zikalala.
Despite allegations that KZN Education Department overpaid for PPE supplies, the report found that it actually underpaid when taking into account VAT, storage and transporting expenses.
Zikalala said the report made recommendations that senior accounting and supply chain management officials be charged for misconduct for contravening SCM processes.
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The report also recommended criminal charges be laid against service providers and the police investigate any possible collusion between the providers and government officials.
Asked when recommendations of the report will be implemented, Zikalala said once investigations from law enforcement are complete.
“There will be a need to ensure that the process is fair and therefore those who need to be suspended will be suspended and the disciplinary process must unfold,” said Zikalala.
“Once the process is concluded then the blacklisting (of service providers) will start. We are not going to have a situation where officials will commit wrongdoing and leave one department to another.”
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