On Thursday, 1 August 2013, the North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) resolved that MEC for Social Development, Women, Children and People with Disability, Collen Maine must implement Chapter 10 of the Public Finance Management Act (PFMA), as the committee has picked up gross financial misconduct in the department.
Chapter 10 deals with financial misconduct and legal remedies to that effect, that government can take if an official is found violating PFMA.
The department was responding on the following issues;
- Salary adjustment of the Head of Department to the highest notch in the province, hardly a day after she was appointed.
- The issue of the R7 Million from the department to BOSASA.
- The TEB properties lease contract with the department
- Documents regarding procurement processes of the new furniture to the new offices, how much was spent and the names of officials that were involved in the procurement process.
On the question on the salary of the Head of Department, Adv. Matshidiso Mogale, that was increased from R1 076 619,00 to R1 212 813,00, with effect from the approved date of appointment, the new MEC, Collen Maine responded by saying that he was briefed on the matter and that the letter was supposed to read “negotiated salary and not increment”, of which it was later corrected.
“The briefing I got on the matter stated that an initial letter that was written by the Acting Director of Corporate Services was wrong and therefore it had to be corrected. It should have not read salary increment but negotiated salary.
“I have also referred the matter to the Public Service Commissioner to investigate it, so I can satisfy myself on it,” said MEC Maine.
In the documents the committee is in possession of, the letter was written by the HOD herself to the former MEC Mokomele-Mothibi and not the Acting Director for Corporate Services as the MEC has stated.
On the issue of the R7 million that was transferred by the department to BOSASA to buy furniture for its new centres, the MEC said that on the contract that he went through, BOSASA was suppose to buy their equipment and claim the money back from the department.
“Then I was told that the addendum will be made to the initial Service Level Agreement but up to today I have not seen that addendum and that money was released to BOSASA,” said the MEC.
In the documents that the committee is in possession of, an amount of R7 796. 131 was transferred to BOSASA. An Acting Chief Financial Officer, Tshepo Mokgatle, that was appointed for 13-14 December 2013, processed the transaction.
On the issue of the TEB building contract lease the department had conceded to the committee that there were problems around the procurement processes of the contract.
MEC Maine said he has suspended the move to the building so he can satisfy himself on the contract. He said he has also appointed a legal committee to advise him on the matter.
SCOPA Chaireperson, Hon. Hlomane Chauke said that the committee has no confidence in the management of the department. After long legal battles in court with the service provider the department won the case. The department did not want to occupy the building as they felt that the process was fraudulent from the start, it came as a surprise that they now decide to move into the building, under the leadership of the HOD.
“We have no confidence in the people that are managing your department. We therefore recommend that you implement Chapter 10 of the PFMA.“ Our government is bleeding and people are not happy with the corruption that is happening . We have been mandated and deployed through our work as SCOPA to defend the fruits of our democracy.
We are putting our foot down on corruption and mismanagement of public funds by people entrusted to handle these funds on behalf of the people of the North West,” said Hon Chauke.
The MEC has been requested to outline to the Committee on 16 August 2013, the processes that he will be taking in line with the recommendations of the Committee to resolve the problems in the department.
Members of the media are invited to attend the meeting and can contact
Namhla Luhabe on:
Cell: 079 527 0628
