Home Affairs Minister Mangosuthu Buthelezi on Tuesday lifted the lid for the first time on allegations of irregular expenditure totalling millions of rands, in a written reply to the portfolio committee on home affairs. Buthelezi, who could not attend the meeting because of a prior engagement, was responding to three questions from the committee. One of them related to a container project to help give rural communities access to the activities of the department. "The container project was never discussed with me by my former director-general, neither was it forwarded as a written submission seeking approval. When it became public... I enquired about the situation and found a host of problems, including irregular actions," wrote Buthelezi.
Detailing his findings in point form, Buthelezi said the problems started with the termination of a "competent" acting chief financial officer. "The person appointed from June 1, 2002 was inexperienced to perform such an important function. The serious nature of the situation became apparent when, on June 3, 2002, she was instructed to place an order for an amount of R12 435 507 for the conversion of 148 container offices. This amounted to more than R85 000 an office without water, power or washroom facilities."
Buthelezi said no prescripts were followed and state tender board instructions were ignored. "Within three days of the order having been placed, a claim was already received for R1 865 326 for payment. There was no contract, no departmental standing committee approval and no treasury approval. Notwithstanding this, the then-acting chief financial officer instructed to pay, which was fortunately reversed before payment. Funds for the containers had at this stage not even been required, and how payment was supposed to be effected is unknown." Buthelezi said the department of public works had also advised them that, among the various options available to ensure service delivery in rural areas, the use of containers was the least desirable.
Home affairs acting director-general Ivan Lambinon told Sapa on Tuesday that he did not know of "this particular document. But there are concerns that things must be done properly and by the rules of the game. As public servants, things must be done honestly," he said. Lambinon identified the then-acting chief financial officer as a Mrs M Shemmans, who was now employed as a director of provision administration in the department. Earlier this month, it was Lambinon who told MPs that he had uncovered a host of problems involving millions of rands in unauthorised expenditure and alleged graft in his department.
The former director-general was Billy Masetlha - now in the presidency - and who had a stormy relationship with Buthelezi. Last year, Buthelezi told the committee he would be forced to table a damage-control bill to protect the state from being sued because the extension, against his wishes, of Masetlha's contract was invalid. Auditor-general Shauket Fakie subsequently agreed that Masetlha's contract was invalid. He also noted that expenditure incurred by Masetlha while his appointment "was not in accordance with... legislative requirements" amounted to about R839m for the period June 21, 2001 to March 31, 2002. A further R332m was spent in the period from April 1, 2002 to June 20, 2002.
Lambinon has been acting director-general since June last year, because of a deadlock between Buthelezi and his cabinet colleagues over who should succeed Masetlha. On Tuesday, committee chairman Patrick Chauke said Buthelezi's absence from the meeting should "not be politicised. Our role in the committee is to play an oversight role over ministers... but we must set up a meeting urgently to discuss matters which are of critical importance and which the minister must brief us on".
Source: Mail & Guardian
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