Johannesburg - The Auditor-General’s report into the Gauteng Department of Sport, Arts, Culture and Recreation - which saw the head of the department suspended for allegedly trying to bribe an official at the AG's office - has found there was R289 million in irregular expenditure over the 2014/15 financial year.
The report’s damning findings have led to a huge shake-up at the department, with Premier David Makhura ordering a forensic audit into the goings-on there.
In October, the head of department (HoD), Namhla Siqaza, was placed on precautionary suspension for allegedly trying to bribe a senior official at the AG’s office.
In the report, the AG official said a suspended official from the Department of Sports as well as the HoD came to their premises to discuss findings related to CIDB (Construction Industry Development Board) and construction contracts.
He was then contacted five times by this department's employee, who insisted on a meeting, but instead he reported them.
The detailed AG report looked at 289 contracts with a total value of R425m and found numerous problems indicating fraud and corruption.
The report showed that companies graded at level five, which are not registered to get tenders above R6.5m, received R19m tenders, as well as numerous irregularities with tenders for reconstruction of the Bob van Reenen Stadium in Krugersdorp.
Some of the problems identified included:
- A construction contract with a total value of R19m which was awarded to contractors who are not registered with the CIDB.
- Two construction contracts with a total value of R41m which were awarded to contractors whose CIDB grading was below the required grading for the value of the particular contract.
- Two tenders awarded with a total value of R2m were procured without inviting competitive bids.
The AG also found that different suppliers, with similar company details, had the same address and contact details.
“This provides evidence that the department was aware the two companies were related and also presents possible irregularities,” the AG said.
The AG conducted a site visit to the Bob van Reenen Stadium, where refurbishment was taking place.
In 2013, then premier Nomvula Mokonyane and MEC for Sports Lebogang Maile announced the stadium would receive a R10m makeover.
Maile said at the time the MEC was happy that the construction work was under way.
But the AG report showed a very different picture. The contractor for phase one received a contract for R9.8m, but “there was an unexplained contract value adjustment of R8.6m”, the report said.
“The work carried out was not proportional to the amount of money paid to the contractor,” the report said, adding that an area of concern was that the contract was for six months, but they were meant to complete the work in two weeks, which was unrealistic.
A different contractor was awarded the bid to do phase three of the project for R19.8m, but there was an adjustment to the contract of R2.7m.
The contractor was paid for a geotechnical investigation, but the AG found there was no trace of this report.
“There was no purpose for a geotechnical investigation to be carried out, since this was a refurbishment project,” the report said, adding the department may have paid for a geotechnical investigation that was not required and not done.
Aside from the suspensions at the department, Sports MEC Molebatsi Bopape was quietly moved to Social Development after anonymous letters were sent to the premier accusing her of interfering in contracts, although many of the contracts were done during Maile’s reign.
Last month, Makhura announced that he had ordered a forensic investigation into the department “to probe allegations of misconduct and maladministration”, spokesman Thabo Masebe said.
The forensic team was mandated to investigate allegations of financial mismanagement, breach of regulations and human resources procedures, as well fraud and corruption.
The preliminary report was expected by mid-December. As the allegations included the role and conduct of Bopape, the premier had referred it to the Integrity Commissioner.
The Star
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