Durban - THIRTEEN KwaZulu-Natal Social Development Department officials have been suspended for alleged involvement in the irregular procurement of blankets for the homeless.
Their suspension follows the recent release of the executive summary of a forensic report by Premier Sihle Zikalala, which confirmed irregularities in relation to the April procurement of blankets and personal protective equipment (PPE) worth R22 million and R19m, respectively.
The investigations were commissioned by the provincial executive council and were prompted by allegations that the procurement contracts were inflated, and linked to “connected” individuals.
Yesterday, MEC Nonhlanhla Khoza said among the suspended are the then department acting head Sbu Ngubane, acting deputy director-general Phindile Sithole, chief financial officer Brian Ndaba, the acting supply chain manager (SCM), four cluster chief directors and SCM officials – all accused of contravening, among other things, sections 45, 81 and 88 of the Public Finance Management Act (PFMA).
According to the report, “the investigation found that there was an abuse of Covid-19 emergency procurement provisions and efforts to cover up, which included attempts to backdate submissions for awards to service providers. It is concerning that the investigation has revealed that prices were inflated and some service providers were not compliant in respect of documents specified in the invitation to tender”.
Two criminal charges against the officials were registered with the Hawks.
Spokesperson Simphiwe Mhlongo said Hawks members from the Durban Serious Corruption Investigation Unit were investigating a case of fraud and corruption reported by the department. “No arrests have been made at this stage,” he said.
Khoza said the officials, including an employee from her office, were also facing charges of misconduct in terms of various SCM prescripts.
“The information unearthed by the investigation points to the high level of recklessness by officials tasked with safeguarding taxpayers’ monies,” she said.
The investigation found the names of most successful companies were given as instructions by senior management to junior officials without following procedure.
“The approximate financial loss to the department as a result of the misrepresentations amounts to R15 808 000,” reads the executive summary.
IFP spokesperson for social development Les Govender said it was unacceptable to blame officials’ recklessness when, in fact, what had happened was “a blatant and organised theft of public funds”.
“At a time when we are facing the challenge of dealing with the devastating impact of the Covid-19 pandemic, we find that senior officials in this department colluded with some members in the private sector to loot the public purse and enrich themselves. We find it unacceptable that procurement involving such huge sums of money is approved without the MEC’s knowledge,” he said.
The DA’s Elma Rabe said they were disappointed that the full report had not been released to portfolio committee members during yesterday’s sitting.
“How can the committee possibly believe the MEC and her HoD when we have yet to see the report – let alone the recommendations?” Rabe asked.
Daily News