AFTER a vitriolic and public battle, Communications Minister Siphiwe Nyanda has withdrawn a letter of dismissal against his director-general, Mamodupi Mohlala. Gen Nyanda fired Ms Mohlala last month, saying there had been an irretrievable breakdown of trust between them. Ms Mohlala challenged her dismissal in court, arguing that Gen Nyanda did not have the authority to fire her.
She filed an affidavit detailing what appears to have been interference in her work by the minister, including the administration of tenders. Gen Nyanda failed to submit an answering affidavit. As part of the out-of-court settlement, Ms Mohlala will be paid her full salary and benefits but will take leave with effect from yesterday, until September 27. This leave will allow Public Services and Administration Minister Richard Baloyi to seek an alternative and equal post for her within the government, including in state-owned enterprises.
If Mr Baloyi fails to do so , Ms Mohlala will return to the Department of Communications. Gen Nyanda will also pay Ms Modupi’s legal costs. Yesterday Ms Mohlala said the withdrawal of her dismissal and the settlement meant she had been “vindicated” and that there was acknowledgement her dismissal did not follow proper procedure. “I’m happy and satisfied that the matter has been settled and (I thank) the president and Mr Baloyi for their intervention. But we cannot ignore what happened between me and the minister. We are exploring other options in the interest of the department,” she said. Asked if she would return to the department if not deployed elsewhere, Ms Mohlala declined to say.
During the first court appearance last month, President Jacob Zuma requested that Mr Baloyi intervene in the matter outside court proceedings. Ms Mohlala was offered a R2,9m settlement but refused, demanding to be redeployed to a post of equal standing.
Gen Nyanda’s spokesman Tiyani Rikhotso said yesterday the agreement did not imply the immediate reinstatement of the former director-general to her old position. He said this arrangement allowed what Ms Mohlala had initially requested from the president to take effect. “As (the) ministry we welcome the agreement as it paves a way for the filling of the position as soon as possible by a suitable and relevant person with the necessary expertise,” he said. Mr Rikhotso said the settlement was done in order to reinstate Ms Mohlala as a public servant. Consequently, Mr Baloyi would explore suitable options in order to address this matter.
The fight between Ms Mohlala and Gen Nyanda broke into the open last month. The pair failed to settle the dispute amicably and their impasse has paralysed the department, with staff morale said to have collapsed, with no collective sense of purpose. Some of Gen Nyanda’s complaints against Ms Mohlala included her hiring people from the private sector to handle department al finances. She was also accused of breaching the minister’s confidence on delicate matters involving Sentech, the state-owned signal distributor. Ms Mohlala complained about Gen Nyanda’s “interference” in tenders, saying this violated the Public Finance Management Act.
Source: Business Day
Showing posts with label Public Finance Management Act. Show all posts
Showing posts with label Public Finance Management Act. Show all posts
Friday, August 27, 2010
Friday, August 13, 2010
Auditor-general confirms CCMA irregularities
Auditor-general Terence Nombembe has found allegations of irregularities in the way the Commission for Conciliation, Mediation and Arbitration (CCMA) procured goods and appointed key staff members were valid — and resulted in irregular expenditure of R23,6m. A report tabled in Parliament yesterday blamed the CCMA leadership for “inadequate monitoring and oversight in the area of supply chain management”.
CE Nerine Kahn said the commission did not agree with all the findings, many of which were technically exacting, but had already addressed most of them as they had already been raised in last year’s financial statements. “We have also put processes in place to ensure that these things don’t happen again in future.”
While mistakes had been made, the intentions of the management and the board had always been “honourable”. Ms Kahn said the CCMA’s governing council had also condoned much of the irregular expenditure, none of which was found by the auditor-general to be due to fraud or corruption.
The investigation by the auditor- general’s office, requested by Labour Minister Membathisi Mdladlana and his suspended director-general, Jimmy Manyi, highlighted the CCMA’s flouting of Treasury regulations and provisions of the Public Finance Management Act. This related to tender processes between 2007 and this year in the awarding of eight contracts that were not advertised, evaluated and adjudicated as they should have been.
In some instances the successful bidder was chosen on the recommendation of a director and was paid more than the amount in the bid proposal. The commission also incurred fruitless and wasteful expenditure by failing to pay pay-as-you-earn tax to the South African Revenue Service for part-time commissioners and by not paying R1,6m in employees’ contributions to the provident fund in due time.
Mr Nombembe called on the CCMA governing body and executive management to “decisively” address the findings in the report and ensure the implementation of effective accounting and internal control systems. Deficiencies highlighted by a previous auditor-general report had not been adequately dealt with, his report noted. “Within the context of the public service and state-owned entities, the primary responsibility for the prevention and detection of fraud and error rests with management of the entity and those charged with governance,” said the report.
Ms Kahn said the dispute resolution organisation’s funding model continued to be problematic and that once again the organisation would experience a shortfall this year and would have to ask the Treasury for more funds.
Source: Business Day
CE Nerine Kahn said the commission did not agree with all the findings, many of which were technically exacting, but had already addressed most of them as they had already been raised in last year’s financial statements. “We have also put processes in place to ensure that these things don’t happen again in future.”
While mistakes had been made, the intentions of the management and the board had always been “honourable”. Ms Kahn said the CCMA’s governing council had also condoned much of the irregular expenditure, none of which was found by the auditor-general to be due to fraud or corruption.
The investigation by the auditor- general’s office, requested by Labour Minister Membathisi Mdladlana and his suspended director-general, Jimmy Manyi, highlighted the CCMA’s flouting of Treasury regulations and provisions of the Public Finance Management Act. This related to tender processes between 2007 and this year in the awarding of eight contracts that were not advertised, evaluated and adjudicated as they should have been.
In some instances the successful bidder was chosen on the recommendation of a director and was paid more than the amount in the bid proposal. The commission also incurred fruitless and wasteful expenditure by failing to pay pay-as-you-earn tax to the South African Revenue Service for part-time commissioners and by not paying R1,6m in employees’ contributions to the provident fund in due time.
Mr Nombembe called on the CCMA governing body and executive management to “decisively” address the findings in the report and ensure the implementation of effective accounting and internal control systems. Deficiencies highlighted by a previous auditor-general report had not been adequately dealt with, his report noted. “Within the context of the public service and state-owned entities, the primary responsibility for the prevention and detection of fraud and error rests with management of the entity and those charged with governance,” said the report.
Ms Kahn said the dispute resolution organisation’s funding model continued to be problematic and that once again the organisation would experience a shortfall this year and would have to ask the Treasury for more funds.
Source: Business Day
Saturday, July 24, 2010
Communications director 'released' from contract
The director general of the department of communications Mamodupi Mohlala has been "released" from her contract with immediate effect. "In the process of trying to find solutions to the challenges, it subsequently became apparent that trust between the minister [Siphiwe Nyanda] and the director general has broken down irretrievably," said spokesperson for the communications ministry Tiyani Rikhotso in a statement on Friday afternoon.Rikhotso said Mohlala was not released from her contract because of tender issues mentioned in the media. He said the department recently faced a number of challenges "relating to internal processes and procedure". Nyanda and the deputy minister Dina Pule met the director general to resolve the issues as they threatened the day-to-day operations of the department and negatively affected its image. In the interests of the department, the staff and the government, the minister concluded that it would be best to release Mohlala from her position as director general from July 23, he said.
Harold Wesso was appointed the acting director general to ensure that the work of the department was not negatively affected. The Mail and Guardian reported last week that Wesso was appointed as an acting director general for two days after a fall-out between Nyanda and Mohlala. Nyanda last week dismissed reports that he was suspending "Mohlala" -- following repeated disagreements over tenders she refused to sign -- as "false, spurious and malicious". Nyanda reportedly issued an instruction that all tenders for the department be cancelled until they had been "discussed and approved by the minister". It was understood that Mohlala warned Nyanda this week that removing the administration of tenders from her would violate the Public Finances Management Act. The saga with his director general is the latest landing Nyanda in the media spotlight.
In March freight group Transnet dismissed two senior managers for irregularly awarding a R55-million tender to a company allegedly linked to Nyanda.
In a separate case, the Democratic Alliance alleged that a company partly owned by Nyanda was unlawfully awarded a R67,8-million tender by the Gauteng roads and transport department.
Earlier this year Nyanda was accused of indulging in a "caviar and silk" lifestyle after allegedly spending thousands of rands on hotel stays at the luxurious Mount Nelson and Twelve Apostles hotels and buying two R1,2-million BMWs for his work.
Congress of South African Trade Union leader Zwelinzima Vavi singled out Nyanda when criticising the government's failure to act on allegations of corruption in Cabinet. Vavi had said reports that Nyanda had spent half-a-million rand on hotels in Cape Town should be probed, which landed him in hot water with its ally in the ruling alliance, the ANC.
Source: Mail & Guardian
Sunday, July 18, 2010
ANC hits out on luxury hotel stays
The ANC came to the defence of cabinet ministers accused of wasting tax payers money by staying at luxury" hotels - and said it was "sensationalism of the highest order". The ruling party said in a statement issued yesterday that the "attack" on its ministers confirmed its long-held suspicion that ANC ministers were being "targeted".
"There is nothing immoral, illegal or unconstitutional in public representatives staying in hotels, as this is not a breach of the Public Finance Management Act, or the provisions of the Ministerial Handbook," said the ruling party's spokesman, Jackson Mthembu.
The furore over cabinet members spending millions of rands on hotel accommodation came as more reports over "extravagant" spending by minsters was published. Last week, the Democratic Alliance published its wasteful expenditure monitor table, setting out spending by the ANC considered to be wasteful or excessive. It reported that since President Jacob Zuma was elected president, government departments and state-owned enterprises had blown more that R1.5-billion on cars, parties, World Cup tickets and other luxuries.
But the ANC said yesterday the media was "failing" in its work to "properly inform" the public about laws governing accommodation of public representatives. "In line with the Ministerial Handbook and prescripts governing public representatives, c abinet ministers, MPs MECs and MPLs are entitled to stay in hotels while their permanent accommodation is not yet ready for occupation," Mthembu said. "No luxury can be derived in staying and working from a hotel environment, where you do not have the privacy you would enjoy staying in a proper home," he said.
Source: Times Live
"There is nothing immoral, illegal or unconstitutional in public representatives staying in hotels, as this is not a breach of the Public Finance Management Act, or the provisions of the Ministerial Handbook," said the ruling party's spokesman, Jackson Mthembu.
The furore over cabinet members spending millions of rands on hotel accommodation came as more reports over "extravagant" spending by minsters was published. Last week, the Democratic Alliance published its wasteful expenditure monitor table, setting out spending by the ANC considered to be wasteful or excessive. It reported that since President Jacob Zuma was elected president, government departments and state-owned enterprises had blown more that R1.5-billion on cars, parties, World Cup tickets and other luxuries.
But the ANC said yesterday the media was "failing" in its work to "properly inform" the public about laws governing accommodation of public representatives. "In line with the Ministerial Handbook and prescripts governing public representatives, c abinet ministers, MPs MECs and MPLs are entitled to stay in hotels while their permanent accommodation is not yet ready for occupation," Mthembu said. "No luxury can be derived in staying and working from a hotel environment, where you do not have the privacy you would enjoy staying in a proper home," he said.
Source: Times Live
Saturday, February 6, 2010
Provincial Health has gone bust
THE Eastern Cape provincial Health Department has gone bust with debts of R1.8 billion, and cannot pay creditors or nursing staff their special payments until the new financial year. Health Department spokesperson Sizwe Kupelo yesterday said the department now had to apply for an overdraft in terms of section 39 of the Public Finance Management Act to continue operating. As part of a dramatic clean-up of its finances it will also disband its existing bid evaluation committees, he added.
The Daily Dispatch has learnt that the shock announcement is a forerunner to further drastic action when heads may roll and resignations are expected. It was also announced that the province’s suspended head of emergency services, Shanks Maharaj, had resigned. He was suspended last year following a Dispatch exposé of the alleged abuse of an air ambulance, used to fly officials to Bloemfontein to watch a Confederations Cup soccer match. Maharaj resigned before facing a disciplinary hearing. Asked whether criminal steps could follow to account for missing funds, Kupelo said: “We will not tolerate maladministration; any person found guilty, no matter who it is, will be dealt with. We take corruption seriously.”
The ANC’s Mlibo Qoboshiyane said they had been aware that over-expenditure on occupation specific dispensation (OSD) payments had caused the budget shortfall; the department would have to approach the national Treasury to ensure services did not collapse. DA health spokesperson Pine Pienaar said t he DA warned in December that the department would run out of funds due to un- mandated payments of some R800 million in backpay to provincial employees and R250m in OSD payments. “This ongoing mismanagement will cripple health services in the province,” he said
United Democratic Movement leader Bantu Holomisa said he had “never heard of a department going bankrupt” and called for all creditors to be paid. Cope’s Nkosifikile Gqomo said MEC Phumulo Masualle and his counterpart at Finance, Mcebisi Jonas, must disclose exactly what had happened. Kupelo said the department planned a major overhaul of its tendering system. On the instructions of Masualle and newly appointed superintendent-general, Dr Siva Pillay, all delegated authorisation of payments had been withdrawn with immediate effect. Existing salaries would be paid out as normal. All pharmaceutical companies had already been paid and there was “enough stock until April”.
Kupelo warned of further labour unrest following the go- slows by nursing staff as a result of disputes over OSD payments. Their union plans to meet with the department on Friday.
Source: Daily Dispatch
The Daily Dispatch has learnt that the shock announcement is a forerunner to further drastic action when heads may roll and resignations are expected. It was also announced that the province’s suspended head of emergency services, Shanks Maharaj, had resigned. He was suspended last year following a Dispatch exposé of the alleged abuse of an air ambulance, used to fly officials to Bloemfontein to watch a Confederations Cup soccer match. Maharaj resigned before facing a disciplinary hearing. Asked whether criminal steps could follow to account for missing funds, Kupelo said: “We will not tolerate maladministration; any person found guilty, no matter who it is, will be dealt with. We take corruption seriously.”
The ANC’s Mlibo Qoboshiyane said they had been aware that over-expenditure on occupation specific dispensation (OSD) payments had caused the budget shortfall; the department would have to approach the national Treasury to ensure services did not collapse. DA health spokesperson Pine Pienaar said t he DA warned in December that the department would run out of funds due to un- mandated payments of some R800 million in backpay to provincial employees and R250m in OSD payments. “This ongoing mismanagement will cripple health services in the province,” he said
United Democratic Movement leader Bantu Holomisa said he had “never heard of a department going bankrupt” and called for all creditors to be paid. Cope’s Nkosifikile Gqomo said MEC Phumulo Masualle and his counterpart at Finance, Mcebisi Jonas, must disclose exactly what had happened. Kupelo said the department planned a major overhaul of its tendering system. On the instructions of Masualle and newly appointed superintendent-general, Dr Siva Pillay, all delegated authorisation of payments had been withdrawn with immediate effect. Existing salaries would be paid out as normal. All pharmaceutical companies had already been paid and there was “enough stock until April”.
Kupelo warned of further labour unrest following the go- slows by nursing staff as a result of disputes over OSD payments. Their union plans to meet with the department on Friday.
Source: Daily Dispatch
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