SCOPA requests Premier Mahumapelo to submit action plan on Public Protector report on financial mismanagement at Finance Department
On Tuesday, 4 August 2015, the North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) has requested Premier Supra Mahumapelo to present action and implementation plan regarding the Public Protector’s report on investigation into allegation of maladministration, abuse of power and irregular expenditure in the Department of Finance, Economy and Enterprise Development.
This came after the Committee held a meeting with Office of the Premier on whether recommendations made on the Public Protector’s report on the investigation where an amount was paid to Morake Incorporated (Morake Inc.) by the department has been implemented.
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 head.
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.
Chairperson of SCOPA Hon. Mahlakeng Mahlakeng said implementation of the Public Protector’s report and recommendations is important on ensuring that there is accountability and transparency within government.
“We trust and believe that Premier Mahumapelo will present a comprehensive implementation plan on how to deal with these irregularities on in the department. If we as government do not act, it will be a clear indication that there is mockery of the supply chain management processes, especially in a key department like Finance,” said Hon. Mahlakeng.
He said the most profound issue that was addressed by the Public Protector is that government money was fruitlessly and illegally spend which includes excessive legal costs by the involved parties which includes a Director in the then Office of the MEC.
Premier Mahumapelo said although he was not briefed of the matter by the former Premier of the 4th administration, Thandi Modise, he will submit a comprehensive implementation report within seven (7) working days.
“We promise to work on the matter from today and promise the Committee that before the proposed date, the report is submitted and there is progress on such remedial action. The 5th administration has promised both the Office of the Auditor General, Chapter 9 institutions and the public that government is committed to deal with consequence management within its spheres,” said Premier Mahumapelo.
He said Office of the Premier is encouraged and motivated to work with the Legislature as an arm of government that plays an oversight on all spheres of government which includes provincial and local public entities.
For more information, contact:
Kabo Letlhogela
Cell: 079 879 1448
