North West SCOPA welcomes implementation plan of Premier Mahumapelo on the Public Protector’s investigation report for the Department of Finance
The North West Provincial Legislature’s Standing Committee on Provincial Public Accounts led by Hon. Mahlakeng Mahlakeng has welcomed the implementation plan by Premier Supra Mahumapelo on the Public Protector’s recommendations on investigations of financial misconduct and maladministration at the Department of Finance, Economy and Enterprise Development.
In 2013, SCOPA requested the Auditor General’s Office, the Public Service Commissioner, Provincial Public Protector’s office and the Hawks to do the investigation on the procurement processes followed in appointing Morake Attorneys, a company that has been paid over R15 million for a disciplinary hearing of the Department of Finance's Head of Department.
In her report the Public Protector, Advocate Thuli Madonsela made amongst others, the following findings;
The procurement process followed by the department in securing the services of Morake Inc. was flawed and unlawful;
The rewarding and appointment letter for Morake Inc. by Chris Molefe, the former director in the office of the MEC amounts to improper conduct, maladministration and abuse of power;
The manner in which invoices and statements of accounts submitted by Morake Inc. were checked and assessed by officials before payment was approved amounts to gross negligence, maladministration and ultimate irregular expenditure. Evidence, especially travelling costs claimed by Morake Inc., indicates that there are discrepancies and double billing in the invoices submitted, resulting in overpayment by the department.
Adv. Madonsela made the following recommendations;
- A remedial action to be taken by the Head of Department for the Supply chain unit of the department
- Audit amounts claimed by Morake Inc. should be audited and overpayments should be recovered with interest.
- The Premier of the province should initiate an investigation into the conduct of the former Acting Head of Department and the Chief Director in the former MEC’s office
- The commercial Crime Unit and the Hawks is to conduct a further investigation into whether or not a corrupt relationship existed between the former MEC for Finance, Louisa Mabe, and Morake Inc. and any other role players involved in the procurements of the services to Morake Inc.
According to the report the Premier presented, officials in the Supply Chain Management of the Department of Finance were trained on the prescripts of the National and Provincial Treasury in respect of demand and acquisition management, that amounts claimed by Morake Inc. were audited and the report was handed to the SAPS Commercial Crimes Unit; and that the Premier's office is in the process of conducting an investigation into the conduct of the then Acting Head of Department and Chief Director in the former MEC's office, Gobodo Forensic Accounting iss conducting the investigation.
Premier Supra Mahumapelo also reported that Mr. S. Morake under Morake Inc. was suspended from practising as an attorney on the 29 April 2014 and subsequently struck off the roll on 5 September 2014.
“The provincial government of the 5th administration respects accountability of the state and will not comprise it as this matter was brought by the Provincial Public Accounts Committee. We commit ourselves to respect all Chapter 9 Institutions and will act on all matters on the Public Protector’s report,” said Premier Mahumapelo.
Hon. Mahlakeng said the Committee is happy with the way the Premier has hhandled the matter so far.
“We are happy about current work done on this and we hope that all matters will be concluded within six months. We actually want to recoup the money back and make sure whoever is responsible for mismanagement of public funds serves time in jail for it.
"We are not going to rest until the money is paid back and somebody is serving a sentence for that," said Hon. Mahlakeng.
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