Suspended Head of Department (HOD), Nic van Staden and Chief Financial Officer (CFO), Kwekwu Odame-Takyi, were today (Friday) charged with gross misconduct. The accused, who have been on pre-cautionary suspension since 14 December 2009 will each answer to four charges when they appear before the Disciplinary Committee sitting at department’s head office in Mafikeng on 22 February from 09h00.
Four days are scheduled for the hearings that will chaired by independent and different Senior Councils n practice.
The charges against the accused, relate to their alleged role in the improper and irregular appointment of consultants and contractors for the construction of various roads in the province (Road Capital Projects) which went beyond the current financial year.
The formulation of the charges against the accused, follow hard on the heels of the damning findings by forensic investigation firm, Price Water House Coopers (PWC), also implicated and raised questions about procedures followed in the purported appointment of a number of entities doing business with the roads directorate.
PWC’s probe also centred on the patterns of expenditure and procurement procedures, and the appointment of consultants and contractors for road projects.
PWC forensic investigation into the roads directorate was, ordered by MEC Mahlakeng Mahlakeng on 13 September 2009. The moves was informed by revelations that more than R1,5 billion, allocated to road capital projects (Capex) for the next period of three years. Medium Term Expenditure Framework (MTEF) was already committed.
Within three months, of the current financial year 2009/10, the roads directorate had spent 100% of its allocated capital project budget of R525 million.
The accused also face a charge relating to the improper and irregular variation of orders on various road capital projects which prejudiced the financial management of the department in respect of roads infrastructural projects.
A variation order is a difference between an approved tender amount and the amount to be paid. This is often caused by unforeseen circumstances. It is an amount which is not built into the original tender amount, but an additional cost payable to a contractor and is permissible by law.
Van Staden and Odame-Takyi are also accused of failure to take effective and appropriate steps to prevent unauthorised. Irregular, fruitless and wasteful expenditures incurred by the department in their areas of responsibility.
Meanwhile, suspended Chief Director for roads, Eddie Thebe is scheduled to make a second appearance before disciplinary committee on Monday, 15 February to answer to 13 charges of gross misconduct which also includes:
* Contravention of sections of the Public Finance Management Act and failure to follow a fair and transparent procurement system in the awarding of road contracts.
Thebe’s first appearance before the disciplinary committee was on 16 November 2009. He requested for a postponement to a later date in order to prepare for the case.
Issued by: Department of Public Works, Roads and Transport, North West Provincial Government
5 February 2010
