Gateway Airports Authority Limited (Gaal) appeared before the Provincial Legislature’s Standing Committee on Public Accounts (Scopa) last Thursday to account for approximately R4,5 million in legal fees spent on civil, labour and criminal cases in previous financial years.
This was the entity’s second appearance and the team was criticised by the committee for appearing to be disorganised.
It was reported during the hearing that in 2014 an employee exposed the entity to potential litigation by withholding service providers’ payment without authorisation.
The employee was dismissed but later referred the matter to the Commission for Conciliation, Mediation and Arbitration and this cost the entity about R1,6 million in legal fees.
Another employee was dismissed after allegedly appointing a service provider who cost the entity R1,6 million and arranging an air show to the value of R710 981 without adherence to procurement policy and without approval from the Gaal Board.
The committee responded harshly after being informed that an employee who cut aircraft cables which cost the entity R288 454 had only been given a final written warning.
It is alleged that the employee in question cut the aircraft cables without authorisation and even insulted the supervisor. Gaal’s Interim Board Chairperson Samson Mahada explained that the entity had hired personnel without the relevant skills to complete certain tasks.
Scopa member Elias Nong’s inquiry as to why this was done was not responded to with a straight answer.
The entity acknowledged that the costs incurred were high and emphasised that six of the nine cases had been resolved by the end of March 2016. Mahada explained that going forward with administrative cases, the entity would use legal officials within the public service and only opt for external legal expertise for more complicated cases.
He further said the post of the company secretary was filled on 1 April and outlined that this would assist in bringing down costs relating to legal advice and necessary intervention.
Story: ENDY SENYATSI
>>endy@observer.co.za
