Parliament's Portfolio Committee on Communications today received a comprehensive briefing by the Office of the Auditor-General on an investigation into alleged misconduct, including financial irregularities, at the South African Broadcasting Corporation (SABC). It also received a preliminary response by the Interim Board to the report.
The Committee was deeply shocked at the monumental failure of the executive management to properly; prudently and judiciously manage the finances and records of the broadcaster.
It noted with serious concern that, between September 2007 and June 2009:
* An organisational culture prevailed at the SABC that showed a complete disregard for the prescripts of the SABC's procurement and tender policy, relevant legislation and regulations of National Treasury.
* There appeared to be numerous cases of conflict of interests by SABC employees doing business with the broadcaster.
* There were selected examples of alleged gross abuse of benefits, such as petrol cards by senior executive managers.
* There was a gradual breakdown in the lines of accountability and proper financial reporting.
Underlying these specific problems, are significant deficiencies in the supply chain management; numerous incidences of fruitless, wasteful and irregular expenditure; and an ineffective human resources management system.
The Committee wholly welcomed the announcement by the Interim Board to undertake a large scale review of operational policies and to institute disciplinary action, and criminal and civil proceedings against identifiable employees at various levels of the broadcaster. The Interim Board will also make every effort to recover monies that were paid to certain companies to which they were either not entitled or where double payments have been made.
Accordingly, the Committee has resolved that:
* It, together with the Standing Committee on Public Accounts, will closely monitor the disciplinary, civil and criminal processes emanating from the report.
* The Office of the Auditor-General and the Interim Board constitute a working team to process all disciplinary matters.
* The Interim Board identify employees who are undermining the investigation by refusing to provide full information and records to investigators and to report the matter to the Committee.
* A joint task team be constituted by the Office of the Auditor-General, the Commissioner of Police and the National Director of Public Prosecutions to conduct the criminal investigations.
* The Department of Communications, together with National Treasury, provide additional resources for the investigations to continue.
* It will ensure the disciplinary, civil and criminal processes are taken through to their logical conclusion.
The Committee has also expressed its appreciation to the Office of the Auditor-General for the timeous report and to the Interim Board for its commitment to resolve the issues.
For enquiries or interviews with the Chairperson, please contact:
Ms Yoliswa Landu
Tel: 021 403 8203
Cell: 073 738 0182
E-mail: ylandu@parliament.gov.za
Issued by: Parliament of South Africa
22 September 2009
Source: Parliament of South Africa (http://www.parliament.gov.za)
