POLOKWANE – The Economic Freedom Fighters (EFF) in Limpopo opened a case of fraud and corruption against the MEC for transport, safety and liaison, Mapula Mokaba-Phukwana and the HOD, Hanli du Plessis for authorising a payment of millions of rands to MPA Investigators.
According to the EFF, the transaction was declared irregular by the national and provincial treasuries.
MPA investigators were appointed to conduct investigations on irregularities in the department.
The case was opened at the Polokwane police’s commercial crime unit by EFF provincial secretary, Jossey Buthane on Wednesday.
Buthane said the process to appoint the MPA Investigators was illegal, as the department did not follow supply chain processes.
“The service provider continues to operate illegally in the department and is being paid on a regular basis. Mokaba has appointed the service provider herself and their first appointment letter bears her signature, and she does not have any authority to do that.
“The national and provincial treasuries advised that the contract be terminated, but it is still operating to date,” said Buthane.
“Mokaba-Phukwana’s department has a total disregard for proper governance and we believe they are deliberately continuing with this service provider because they are benefitting from it. We don’t understand why the transaction was authorised.”
He claimed the HOD admitted in the transport portfolio committee that an irregularity occurred.
“Also, the MEC was asked why she suspended half of her executive management, and she responded by saying she is dealing with EFF corruption in the department.
“It is very clear that the intentions of the MEC to appoint the service provider was based on political basis, not on proper governance principles,” he continued.
Buthane said the EFF did its own investigation into the service provider, and their findings “substantiated our beliefs”.
“We further established that the MEC and HOD have abruptly cancelled the services of a certain company, substituting it with another.
“This process still did not follow supply chain processes, but were directives from the MEC.
“We are afraid that even if they could go out on tender to legitimise this corruption, the same company will be appointed.
“We request that the Hawks and the SAPS investigate this matter urgently before the taxpayers’ money is lost,” he said.
Review is in possession of a letter of complaint written by the department’s chief procurement officer, Kenneth Brown, which was addressed to the HOD of the provincial treasury, Gavin Pratt, Mokaba Phukwana, Du Plessis, the former MEC for treasury, Rudolph Phala, the premier, Stanley Mathabatha and to the minister of finance, Nhlanhla Nene, regarding the procurement of the service provider.
In the letter, Brown said Treasury Regulations 16A6.4 did not give authority to the executive authority, but to the accounting officer to deviate from inviting competitive bids if it was impractical to invite competitive bids.
According to Brown, it was not clear what role the provincial treasury played in this mater.
“Treasury Regulations 4.1.3 states that if an accounting officer is alleged to have committed financial misconduct, the relevant treasury, as soon as it becomes aware of the alleged misconduct, must ensure the relevant executive authority initiates an investigation into the matter and if the allegations are confirmed, holds a disciplinary hearing in accordance with the prescripts applicable and agreements applicable in the public service,” reads the letter.
“Interference by the MEC in supply chain management processes is seriously prejudicial to proper financial management and the discharge generally of the statutory objects of the public finance management act and treasury regulations.
“Treasury is directed to ensure the irregular appointment of MPA is terminated with immediate effect and a full assessment of the work done by the MPA is done to establish if the department received value for money,” the letter continued.
Transport, safety and liaison spokesperson, Kagiso Mootane, said the department knew about the charges against the MEC and HOD.
Mootane could not immediately comment and promised that the MEC would respond to all queries in due course.
