On 8 September 2010 Kweku Odame-Takyi, former Chief Financial Officer of the Department of Public Works, Roads and Transport (DPWRT), has been found guilty of 12 of the 15 charges leveled against him for gross misconduct, contrary to the provisions of the Public Service Act, 103 of 1994 (PSA), the regulations promulgated under the PSA, as well as disciplinary code, the SMS handbook and the procedure for public service regulations, 2 of 1999, as is applicable to senior management.
Odame-Takyi, as CFO of the DPWRT and Chairperson of the Departmental Procurement Committee (DPC) was the custodian of the finances of the department and no payment was approved or made without his approval.
Amongst the multitude of charges Odame-Takyi was found guilty of misconduct in his capacity as the CFO in that he allowed payment of monies to contractors who had been improperly appointed contrary to the department's supply chain management policy. Odame-Takyi further caused amounts in excess of R30 million to be paid to emergency contracts when he was aware of the department's capital of R30 million.
Odame-Takyi was also found guilty of paying alleged inflated amounts for the purchase of Jet Patcher machines (for patching pot holes) and Bitumen Emulsion from Raliform Investment Holdings on the recommendation of dismissed Chief Director: Roads Management, E Thebe. It was proved that the Jet Patcher machines and the Bitumen Emulsion products were purchased at R282 013.20, a higher price than would have been paid if the contract had gone out to open tender.
The suspended CFO was also found guilty of contravening section 38(1)(a)(i), alternatively section 45 of the Public Finance Management Act (PFMA) in that he failed to ensure that the department has and maintains effective, efficient and transparent systems of financial and risk management and internal control. Odame-Takyi committed the department to R3 221 000 being the actual payment of the asset register amongst other issues. This amount of money had not been planned or budgeted for.
Additional charges relate to the payment of R673 540 854.96 in respect of 19 contracts awarded to contractors without an open tender process as well as the contravention of section 38(1)(a)(ii), alternatively, section 45 of the Public Finance Management Act, 1 of 1999 in that he failed to take effective and appropriate steps to prevent unauthorised, irregular and fruitless and wasteful expenditure and losses resulting in payments made to contractors.
Odame-Takyi further contravened section 38(1)(a)(f), alternatively, section 45 of the Public Finance Management Act, 1 of 1999 in that he failed to settle all contractual obligations of the department and to pay all monies owing within the prescribed or agreed period.
He thereby, caused the department financial loss and prejudice when he failed to settle departmental debts of obligations from the financial year 2008/09 totaling R129 530 917 as well as being charges with being in contravention of section 39(1)(b) alternatively section 45 of the PFMA 1 of 1999 in relation to the prevention of unauthorised expenditure in that he caused consultants to be paid for scoping reports, detailed designs, tender documentation and construction supervision for projects that were not listed in the infrastructure provincial management project (a three year plan within a 10 year infrastructure development plan).
Further to this, payments were made to consultants who were not listed for the roads project and in this regard unauthorised expenditure.
In addition, he was charged with the contravention of section 39(2)(a) alternatively section 45 of the PFMA; in that he failed to take effective appropriate steps to prevent any overspending of the vote of the department or the main division within the vote (capital expenditure within the Roads Directorate) when he caused consultants to be paid to do scoping reports, detailing designs, tender documentation and supervision of projects that were not listed in the IPMP.
As a result, 97.8 percent of the budget was already spent on 31 August 2009 which amount comes to approximately R525 million.
Odame-Takyi also contravened section 39(2)(b)(iii) alternatively section 45 of the PFMA when he caused 97.8 percent (approximately R525 million) of the capital expenditure of the roads directorate to be spent within five months or by 31 August 2009 and he contravened section 40(1)(a) alternatively, section 45 of the PFMA in that he failed to keep full and proper records of the financial affairs of the department.
Mr Odame-Takyi is additionally charged with contravention of section 41, alternatively, section 45 of the PFMA in that he failed to submit to the relevant Treasury or the Auditor-General, such information, returns, documentation, explanation and motivations as may be prescribed or may be required by the Auditor-General.
Finally, Odame-Takyi was charged with contravention of regulation 8.1.1, alternatively section 45 of the PFMA in that he failed to ensure that the internal procedures and internal control measures are in place for payment, approval and processing.
The result of this was that invoices from the 2008/09 (previous financial year) totaling R129 530 917.10 were paid from this year construction budget. Eight witnesses provided evidence and testified against Odame-Takyi during his disciplinary hearing.
"Odame-Takyi has therefore been found guilty of gross misconduct on the abovementioned charges and we await sanction recommendations," said Mahlakeng.
"I will not pronounce right now on what these sanctions will be as I have not had sight of the recommendations but suffice to say, I along with officials in this department will continue to weed out wrong doing.
"We aim to ensure that the Department of Public Works, Roads and Transport receives a clean audit and to also continue to step up our service delivery to the citizens of this province," concluded Mahlakeng.
Contact:
Roberta Makhambeni
Tel: 018 387 2447
Cell: 071 215 0538
E-mail: rmakhambeni@nwpg.gov.za
Province
