WEDNESDAY, 6.30PM
THE Independent Broadcast Authority failed to allocate resources effectively “and with probity” and there was evidence of a serious lack of financial controls, the Auditor General’s damning report to parliament said today. (Wednesday)
The report says a fundamental review of the way the IBA conducts its finances is required. The report confirms widespread allegations by IBA staff and in the media of mismanagement at the IBA.
The most startling discovery was of an attempt to shift R800 000 from the IBA to another bank account, a fraud that was stopped only when queried by bank officials. The money was returned, but investigations continue.
The IBA councillors were ordered in 1994 not to accept gifts worth more than R100 or to fraternise with decision-makers in broadcasters or the advertising industry — a decision which was widely flouted.
Another case was of a United States Information Services invitation to two councillors to visit the US, which stated that all travelling costs would be paid and the councillors would be provided with daily allowances during their stay. However, the two councillors upgraded their tickets to business class at the expense of the IBA, and one councillor claimed the full IBA daily allowance, excess costs of R6 009 on hotel bills and also used the IBA Diners Club card. In another case, two councillors stayed in Johannesburg hotels to attend a conference — even though they live in Johannesburg.