The Commission for Conciliation, Mediation and Arbitration (CCMA) on Sunday denied all allegations of corruption and fraud made by its former employee in Parliament.
“The CCMA is neither corrupt nor fraudulent. Management irregularities have largely been historic or of a technical nature and they have been rectified,” CCMA governing body chairperson, Tanya Cohen, told a media conference in Johannesburg.
These irregularities had not impacted on the CCMA’s delivery against its mandate, according to Cohen.
Mothibedi Mokoena, formerly of the CCMA audit unit, reportedly told the Parliament’s portfolio committee on labour on Monday that he and two colleagues were fired after alerting labour director-general Jimmy Manyi to alleged fraud and tender irregularities in the CCMA.
“It distresses us that baseless and false allegations have been manipulated to cast the CCMA in a bad light.
Good governance
“We want to make it clear that management is in very good hands, that there is good governance and stable management at the CCMA.
“We certainly believe that if one looks at the facts of this matter, there is overwhelming evidence that there are no allegations of fraud and corruption that have been found by the Auditor-General through the numerous investigations.”
Auditor-General Terence Nombembe, who was prompted by a list of allegations handed to him by the labour department in October 2009, found evidence of financial mismanagement at the CCMA.
In a report tabled in Parliament on Thursday, Nombembe identified wasteful expenditure of R1.2 million on travel expenses and R11 million on SA Revenue Service penalties and fines for failure to collect tax from part-time commissioners.
Nombembe found that the CCMA also failed to follow Treasury regulations in appointing service providers for the supply and maintenance of printing services and IT services.
Without following procurement regulations, it appointed a quantity surveyor and project manager for office renovations, a company to redesign its web page, an accounting firm and hired a company to supply portable voice recorders.
Fully authorised
In response, the CCMA said the IT tender went through, but later, on a representation concerning a company’s BEE status which was incorrect, the contract was cancelled.
The CCMA said the travel expenses were fully authorised and there were no irregularities.
The body received final opinion from the Auditor-General on July 31 and there was a conclusive statement that there were no findings of fraud and corruption within the CCMA, said Cohen.
“We believe as the governing body that the CCMA plays a very, very valuable role in our labour market, in our society and in our economy. We want the good name of the CCMA to be maintained.”
The CCMA will appear before Parliament’s Portfolio Committee on Labour on Tuesday in an attempt to defend its reputation.