Cape Town - Forensic investigations by Deloitte into alleged fraud and corruption have cost the provincial government R51 million over three years, it has been revealed.
This has been described by former ANC Western Cape Premier Lynne Brown as a waste of taxpayers’ money.
The information came from Premier Helen Zille in response to a question in the provincial legislature by Brown about the overall cost of outsourced forensic investigations.
Zille said a total of 137 investigations had been completed by Deloitte between December 2011 and May 31 this year, costing the provincial government about R51m. Of these, 84 investigations identified fraud and/or irregularities, 12 investigations could not confirm allegations, another 35 cases did not require a detailed investigation after the preliminary inquiry, and six investigations identified various instances of non-compliance.
“In addition to the 137 investigations, 17 cases were duplicate matters and were incorporated into an existing case, and 58 cases required an initial investigation by the respective department,” Zille said. “For the period, therefore, 212 cases were closed.”
Brown said paying a private company R51m for forensic investigations which yielded “no, or very little, results” was a waste of taxpayers’ money.
She claimed Zille’s department had removed people from the province’s forensic investigative unit after taking control of the province in 2009, and had since replaced them with Deloitte employees.
“They have resolved very few cases, but the premier keeps referring to a backlog of cases. If you are paying a company R51m, people should have been arrested and investigated. No one has been arrested.”
In response, Zille’s spokesman, Zak Mbhele, said most of the investigations resulted in findings of fraud or irregularities.
The unit’s proven effectiveness was a result of it being strengthened over the past few years, said Mbhele.
“We have seen results in reducing the case backlog that the DA administration inherited in 2009, so that by March this year, the unit had finalised all cases started in or before 2010/11.
This was achieved by addressing the root causes of the problems that previously plagued the unit, and building a strong foundation to ensure a competent and effective unit,” he said.
The investigations over the past three years included a probe into the tender awarded to Hip Hop Media, a communications company fingered in the alleged “brown envelope” saga involving journalists allegedly paid off by then premier Ebrahim Rasool.
The forensic investigation found that there were irregularities, but no proof of corruption in the awarding of the tender.
Cape Argus