Ali Phosa is being investigated in connection with the disappearance of about R500 000 of RDP funds. Ann Eveleth reports
STATE-OWNED port operator Portnet is investigating alleged mismanagement of Reconstruction and Development Programme (RDP) funds by the brother of Mpumalanga Premier Matthew Phosa.
The parastatal said this week it wanted Ali Phosa to provide receipts for his expenditure during his two-year stint as co-ordinator of RDP projects at Durban Port, the busiest in Africa. Around R500 000 is under investigation.
Phosa denied the allegations on Wed-nesday, telling the Mail & Guardian it had “no business” inquiring into Portnet affairs. Port manager Bax Nomvete, who called an emergency meeting on Wednesday to ensure all queries were channelled to him, was unavailable.
But Portnet human resources executive Patrick Dada confirmed that the investigation was under way, following allegations by port union representatives in a recent joint forum with managers.
The investigation is understood to centre on claims that Phosa paid cash to RDP projects that could not be traced, to individuals in contravention of Portnet regulations and for items which did not qualify as RDP items. These allegedly included a video camera, a marquee, tents and consulting fees.
Dada would not comment on the veracity of the allegations until the investigation is complete: “I cannot say whether they are true or false. They are being investigated. If there is any substance to the allegations, they will be exposed internally.
“The trade unions have a right to know that our RDP projects are benefiting their communities and are not just a corporate public relations exercise. In this context, we have said the books must be opened, Phosa must explain how he has spent the money and show receipts.”
Dada said the parastatal spent between R7- million and R10-million a year on RDP projects nationally. He referred further questions to Durban port human resources manager Arthur Mzimela, who referred the matter to Nomvete. Mzimela said Phosa would have reported directly to Nomvete.
Phosa told the M&G he had never heard of the organisation to which he is alleged to have paid consulting fees, and that the camera in question was in his office. He said he would be handing his response to Nomvete.
Dada said Phosa’s RDP post – as well as all other RDP posts within the parastatal – had been dissolved in a process aimed at integrating the RDP into existing departments.
It was unclear what post Phosa currently holds as he refused further comment. But several employees said he had been promoted to the post of port security manager.