22 June 2006
The Tourism Hospitality Education and Training Authority (Theta) Seta is
being investigated for gross financial mismanagement involving R13 million.
This was revealed by Labour Minister Membathisi Mdladlana at a media
briefing in Johannesburg today (Thursday).
The action stems from the findings of the forensic audit released in
February this year that Theta inappropriately awarded a tender to an
undeserving service provider.
The service provider in question Nomvuyo Molefe and Associates (NMA) was
awarded the contract in 2004.
The forensic audit ordered by the Department of Labour has been prompted by
complaints of irregularities against Theta by hospitality professionals, which
was among service providers that had applied the Theta National Skills Fund
sponsored scheme called the Intac Project.
When their application failed they challenged the awarding to NMA on the
grounds that the latter were not accredited as required in the request for
proposal and did not have capacity to deliver on the project.
Despite the advice of the Intac not to appoint NMA due to their lack of
capacity and accreditation NMA was awarded the tender, which formed the biggest
part of the contract.
Minister Mdladlana told the media today that having studied the forensic
report, which was also given to all Theta Executive Council (ExCo) members, he
had also received legal opinion on other aspects regarding the allegations.
âI have given the senior leadership of the tourism sector 14 days to come
back to me on the interventions and remedial action that they are going to
take, failing which I am going to institute procedures of appointing an
administrator to run the Seta and the to sort out the current mess.â
âWe are also going to hand over the attorney generalâs report and other
supporting documents to the Scorpions to further investigate this matter and
where possible to firmly deal with anyone involved in fraud and to recover
money meant for training,â Minister Mdladlana said.
He said that going public with this matter was in the spirit of transparency
required of the public service and good governance.
Enquiries:
Mokgadi Pela
Cell: 082 808 2168
Issued by: Department of Labour
22 June 2006
