Glenda Daniels
Two top skills development executives with a sector education training authority (Seta) have been suspended on allegations of financial irregularities and personal enrichment.
Dr Haroon Aziz, CEO of the Forestry Industries Education Training Authority (Fieta), and Daniel Malindi, head of finance at Fieta, were suspended three weeks ago. They are being investigated by the Scorpions and the matter has been referred to the asset forfeiture unit.
They are alleged to have ordered expensive office furniture and bought cars and property with Fieta money.
Fieta is one of 27 Setas set up in terms of the Skills Development Act by the Department of Labour. The aim of the Setas is to improve and develop South Africa’s human resource capacity and skills base, and decrease the country’s phenomenally high unemployment rate.
Grants, collected from employers through the South African Receiver of Revenue, are administered by the Department of Labour.
“Fieta has not paid out any levies to the chambers that it was servicing, which are furniture, paper and pulp, lumber millers and wooden products,” a source told the Mail & Guardian.
Fieta board chair Dennis Gerson confirmed that the two executives had been suspended. He said: “There is an investigation. There are allegations and they have been suspended. After more proper investigation in about a week or two we will have information of more substance.”
The men responded to the allegations through their lawyer, Nolene Morris. “Our clients wish to state for the record that they have at no stage enriched themselves at the expense of the Fieta. We, on behalf of our clients, however, have informed the Department of Labour of some of the allegations being made against our clients, communicated to us by the chairperson of the board of Fieta.”
Morris confirmed that her clients are aware they are being investigated by the Scorpions, “despite the absence of clarity as to what exactly they are investigating”. She said Aziz and Malindi deny allegations of purchasing furniture. She added that “cars and property purchased by them were from the proceeds of bona fide loans from the Fieta”.
The men also denied that Fieta has not distributed any grants to the industry it services. “Grants have been paid out to those in the industry who have verified their bank account details and who have satisfied the requirements relating to the payment of grants,” said Morris.
“It is our clients’ view that the allegations being made must also be seen in the context of Fieta, which is riddled with political tension and deeply divided along racial lines.”
But labour department Director General Rams Ramashia says there is no excuse for corruption. He condemned the alleged misappropriation of funds from Fieta. He said all employers paying the skills development levy need to be “reassured that while this form of aberration is not normative or widespread, it is nevertheless deplorable and abhorrent.
“We shall continue to insist on the highest standards of financial accountability and apply a zero-tolerance approach to financial impropriety.”
The labour department commended the Fieta board for the way it is handling the allegations. Ramashia added that the auditor general’s office and his department have committed themselves to assist the board to get to “the bottom of the matter”, and to ensure that Fieta continues to function.
The Office of the Auditor General is assisting with a forensic audit of the accounts. In the meanwhile an interim CEO has been appointed to Fieta. It is expected that hearings and court proceedings will be instituted before the end of June, Ramashia said.
“Our approach to dealing with this case must send a clear signal to other Seta officials that corruption shall not be tolerated,” Ramashia said.