Johannesburg - Head of the Department of Finance in Gauteng Stuart Lumka has been dismissed for alleged financial misconduct and could face possible criminal charges, the provincial government said on Tuesday.
Lumka was placed on special leave in May last year following an investigation of allegations of financial impropriety, including the unauthorised payment of R48 million to a service provider that was not contracted to the department.
“On 30 April 2015 Premier David Makhura informed Mr Lumka of government’s decision to terminate his services after an independent disciplinary hearing found him guilty of gross financial misconduct and recommended his dismissal,” spokesman Thabo Masebe said in a statement.
He faced three charges and was acquited on one charge.
Masebe was accused of making a payment of R48.8 million to Shimo IT Solutions when the department had no legal obligation to do so.
“He was also charged with acknowledging liability in favour of Novell Ireland Software Limited and Shimo when he was not authorised to do so and that the payments, which were not due, were irregular or fruitless and wasteful expenditure,” Masebe said.
In the second charge, Lumka is said to have caused the department to incur irregular expenditure of R2.1 million when he signed the Shimo Project charter.
“Shimo was not procured in a fair, equitable, transparent and competitive manner and through an open tender process.”
The third charge stated that Lumka caused his employers to incur fruitless expenditure when he paid Shimo a cancellation fee or R1 million.
Masebe said: “Mr Lumka was found guilty on the first two charges which amounted to over R50 million and acquitted on the third charge. The chairman of the disciplinary tribunal said the only appropriate sanction was dismissal as he had abused his position of trust.”
He said the chairman indicated that evidence showed that Lumka was derelict in a bad manner in his conduct pertaining to the charges for which he was found guilty.
“He ignored not only legal advise but went against a prior collective decision that there be no further payment to Novell,” the chairman was quoted as saying.
Lumka’s representation that he had merely exercised “poor judgment” was rejected.
The provincial government has also requested the authorities to advise whether to institute criminal charges or a civil claim against Lumka to recover the money.
“The province is awaiting the outcome of the opinion from the state attorney,” said Masebe.
ANA