Johannesburg - The Gauteng government’s finance watchdog committee wants the MEC for Economic Development Lebogang Maile to explain what happened to contracts worth R100 million under his care.
The provincial standing committee on public accounts (Scopa) issued the instructions after senior officials of the Department of Economic Development failed to give detailed accounts about what happened to the multimillion-rand tenders for youth employment and internet connectivity. It’s not clear whether the money was spent or what was delivered.
These projects were the brainchild of former Gauteng premier Nomvula Mokonyane but she left office last year with nothing to show for them.
Mokonyane - now national Minister of Water and Sanitation Affairs - commissioned an inquiry into the contracts - with the chief culprit being head of department Khulu Radebe.
Last week, Scopa heard the Department of Economic Development spent more than R660 000 on the investigation. Members were irritated that despite the conclusion of the probe, senior officials - including head of department Phindile Mbanjwa and chief financial officer Kgomotso Mojapelo - were still unable to give details about the charges against Radebe, Linda Canca, Nomawethu Duruwe and Moeketsi Valashiya.
The department failed to furnish Scopa with the outcome of the forensic investigation, including the role of officials in the alleged misuse of the funds.
Last February former Gauteng MEC for Economic Development Nkosiphendule Kolisile filed a R9.9m lawsuit against Radebe and Canca, the former head of IT.
Kolisile stated that Radebe and Canca were given the responsibility of starting a programme to provide internet connectivity, among other services.
He said Radebe - acting on the advice of and in cahoots with Canca - entered into an agreement with ECI Telecom Africa in 2012 to implement the programme, called the Alexandra WiMax Pilot Project.
In his application, Kolisile said Radebe and Canca should have exercised reasonable care and thus known that the project had no prospect of success and that any cost incurred in the ECI Telecom Africa agreement would have no value unless the Department of Economic Development had procured the appropriate radio frequency licence from the Independent Communications Authority of SA.
Kolisile said without that licence, his department suffered losses of R9.9m. He wanted Radebe and Canca to reimburse it.
These details were not included in responses to questions asked by Scopa last year.
The department has been given until Wednesday to provide Scopa with the outcome of the forensic investigation.
Scopa also wants details of measures taken to recover the millions lost.
The Star