Background
The Gauteng Provincial Legislature (GPL) is committed to good governance by promoting ethical behaviour amongst its staff complement and implementing measures to detect and combat fraud, corruption, favouritism, nepotism and unfair or irregular practices. GPL expects a high standard of behaviour from all its senior managers and employees, and as an organ of state responsible for overseeing the work of the Executive, GPL must be exemplary in its conduct in relation to all aspects of its business.
Last year, the Honourable Speaker of the Gauteng Provincial Legislature: Ntombi Mekgwe received an anonymous letter alleging high levels of corruption, nepotism and malpractices taking place in the GPL. The Speaker considered the allegations to be very serious as they could adversely impact on the standing and reputation of GPL, and resolved that those allegations must be investigated.
For purposes of the investigation, the Speaker, in consultation with Mr Mike Seloane (Public Service Commissioner based in Gauteng), established a Reference Group comprising of professional and independent persons to lead the investigations.
The reference group will comprise of the following:
a. Mr Mike Seloane (Public Service Commissioner based in Gauteng);
b. Dr Ralph Mgijima (Integrity Commissioner of GPL);
c. Mr Godfrey Tsotetsi (Chairperson of Oversight Committee on the Office of the Premier and the Legislature (OCPOL); and
d. Mr John Davis (Chairperson of the GPL Audit and Risk Committee)
In order to support the Reference Group, Ernst & Young were appointed to provide all the necessary professional and technical services by conducting the investigations and reporting to the Reference Group.
The purpose of the investigation was:
- To ascertain whether any corruption, nepotism, irregular or unlawful activities have taken place during the period cited in the anonymous letter;
- Whether anyone must be held accountable for such irregularities or unlawful activities.
Following the investigations, the findings were presented to the Reference Group, and after due deliberations, the Reference Group submitted the findings and recommendations to the Speaker. The Speaker referred the findings and recommendations to the Secretary to the Legislature and Senior Management to respond to the findings. On behalf of Senior Management, Secretary to the Legislature provided an extensive response to the findings and recommendations.
The findings on the investigations were as follows:
1. On appointments without due process
- There was no wrong-doing on the part of the Secretary in upgrading position of Executive Assistant to P8
- Secretary acted within his delegated authority in changing the position of Senior Coordinator to Executive Assistant;
- A contractor was not appointment through SCM policy and was loaded on payroll as employee not contractor;
- The post of the Manager: Speakers Office was advertised in 2004, and her appointment was political. The Manager did meet the minimum education qualifications;
- The appointment of Executive Assistant to the CFO and upgrading of her position to P8 followed due process;
- Upgrading of position of PA to the Speaker was done following her political appointment
2. Corruption and nepotism with regard to appointments
- Although there are officials who are related, the allegation of nepotism and corruption was found to be without basis
- There was no evidence to link the appointment of Senior Coordinator: Local Government and Housing and Committee Coordinator: Committee of Chairpersons
3. Extensions of contracts of senior managers without due performance assessments
- There have been some Directorates which performed below average;
- No records or incomplete records of performance agreements, but assessments done on performance plans
4. Inconsistent or undue extensions of contracts of interns
- No substance in the allegations of inconsistency as all internship contracts were extended to total 2 years
5. Lack of investigation and appropriate actions against officials on alleged stolen cellphones
- The matter was reported to the South African Police Services and the National Prosecuting Authority (NPA) refused to prosecute due to insufficient evidence
- Director: Institutional Support Services was charged and subjected to disciplinary process after he refused to charge relevant officials for negligence
6. Illegal renting out of GPL equipment and City Hall that result in self-enrichment
- No evidence on allegation, but practice could lead corrupt and fraudulent activities if bookings and payment are done by the same person
7. Irregular Supply Chain Management processes and wasteful expenditure on Gauteng Speakers Forum projects
- Evaluation not done;
- Extension of scope of work for a contractor was beyond quotation threshold, and contravened Sections 6 and 11 of Financial Management of Gauteng Provincial Legislature, Act 7 of 2009;
- There were two companies with the same directors which bid for jobs at GPL, with bids differing by about R100 000 (bid-rigging)
- Tender advertised for administration support when there is internal capacity
8. Abuse of overtime in that while people are working flexi hours, they also claim in suspicious circumstances
- No evidence found of abuse of overtime
9. Selection appointments of service providers and delayed payments (certain officials receiving kickbacks to appoint certain service providers and delaying payments of service providers)
- No evidence could be established
10. Unreasonable decisions of senior management (cancellation of year end functions and monetary awards for long service)
- This is a discretion of Management and was informed by financial constraints that the Legislature faced
11. Jobs for sale (allegation that a certain employee is involved in the jobs for sale scam with recruitment section)
- There was no evidence of jobs being sold
12. Undeclared remunerative work outside GPL
- HR: Executive has declared her remunerative work outside of the Legislature and was granted by Secretary to the Legislature
Recommendations
- Management must improve communications on all matters that affect staff;
- Identification of all HR policies to be reviewed and gaps closed;
- Management must strengthen consequence management;
- SAP system to be used to book the City Hall and payment to be done through a process to be managed by Finance;
- Training must be provided to allow staff members with experience to complete their studies and improve their qualifications needed for the jobs;
- Those who are responsible for appointment not in line with procedure must account for their actions;
- Management must strengthen relations with leadership of organised labour to resolve matters before they get out of hand;
- Finalise agreements with the existing Unions in the Legislature;
- Human Capital Unit to keep all important human resources documents including those of Senior Managers;
- The coordination of Gauteng Speakers Forum to be the direct responsibility of the Secretary to the Legislature working with relevant officials in municipalities and Department of Cooperative Governance and Traditional Affairs (COGTA).
Management Response
Management embraced the findings, and provided a detailed response to each of the findings to the Speaker.
Conclusion
Based on the findings and detailed response provided by Management, and scrutiny of that information, the Legislature Services Board (LSB) resolved that:
- There was no wrong-doing on the part of Secretary to the Legislature in approving the upgrade of positions of Executive Assistant as he was delegated to do so;
- The matter of performance below average of some of the Directors related to two Directors in 2010/11 financial year, and performance improvement plans were put in place, and subsequently the performance of the said Directors improved;
- Secretary to the Legislature must ensure that issue of bid-rigging is investigated further and that those responsible are brought to book
The Legislature will continue to strengthen its internal control system to prevent fraud and corruption. The LSB appeals to staff at the Legislature and the people of Gauteng broadly to continue to be vigilant and assist GPL to fight fraud and corruption.
For more information please contact:
Ms Pfano Bulasigobo
Tel: 011 498 6381
Cell: 060 533 1982
E-mail: PBulasigobo@gpl.gov.za
