investigation
26 November 2007
Following numerous negative news reports in the print media on the alleged
financial irregularities within Ezemvelo KwaZulu-Natal Wildlife (EKZN), the
department's biodiversity management and conservation public entity, I felt
that it would be proper to set the record straight for the benefit of both
internal and external stakeholders as well as the tax-paying public.
The Auditor-General made an audit on the financial books of the Ezemvelo
KwaZulu-Natal Wildlife and issued an adverse opinion in respect of the 2006/07
financial year that ended on 31 March this year.
As the Executing Authority politically responsible for this public entity
which falls under Programme four which is conservation, I felt it was incumbent
on me that I satisfy myself as to the circumstances surrounding the adverse
report of the Auditor-General since the Department of Agriculture and
Environmental Affairs effects quarterly transfer payments to the public
entity.
I was very concerned about the Auditor-General's report. I then instructed
the Head of Department (HOD) Advocate Modidima Mannya in his capacity as the
Accounting Officer responsible for the transferring of funds to EKZNW to look
into the matter. The HOD had then commissioned a diagnostic investigation to
determine the nature and scope of any financial problems within the entity.
On completion of the diagnostic investigation, the HOD had then reported
back to me the findings of the diagnostic investigation and I subsequently
convened a meeting and presented the findings of the diagnostic investigation
to the KwaZulu-Natal Nature Conservation Board which is responsible for
Accounting Authority functions as well as governance functions of the
entity.
I discussed the findings and the Board's comments with the Board. Following
discussions, I decided to conduct a forensic investigation.
Since the HOD performs Transferring Authority functions with regard to
finances of EKZNW and coupled with the seriousness of the issues raised in the
diagnostic investigation findings, he had then sought advice from Treasury as
per the prescripts of Section 49 (3) of the Public Finance Management Act
(PFMA) with regard to the continued performance of Accounting Authority
responsibilities.
The HOD had in writing requested Treasury that it instructs or approve that
another functionary other than the Board be the Accounting Authority.
Subsequently Treasury had, in a letter dated 23 October 2007, granted its
approval that the Board be relieved of its Accounting Authority duties for a
period of four months and that a forensic investigation is conducted into the
management of EKZNW.
Subsequently, I have decided to appoint an accounting firm (Deloitte and
Touche) to conduct a forensic investigation into management of Ezemvelo
KwaZulu-Natal Wildlife.
The terms of reference of the forensic probe include investigation into the
alleged irregularities identified initially by the diagnostic investigation
during the review of Ezemvelo KwaZulu-Natal Wildlife. In addition, I hope that
the forensic investigation will identify any persons responsible for the
alleged irregularities thus assist the department to initiate appropriate
disciplinary, civil and/or criminal proceeding.
The scope of the forensic investigation will cover the following:
* corporate credit cards
* supply chain management issues
* technical service department
* personnel
* company houses
* corporate government
* revenue collected and sources of revenue.
For enquiries please contact:
Mbulelo Baloyi
Media Liaison Officer
Cell: 082 415 7277
Issued by: Department Agriculture and Environmental Affairs, KwaZulu-Natal
Provincial Government
26 November 2007
