Wheeling and dealing in government money has left some officials dazed, confused … and in trouble
A year ago, Terror Lekota fired a man. The action led to his own `redeployment’. Now a report shows Lekota may have been right, writes Rehana Rossouw
THE senior African National Congress official who helped oust former Free State premier Patrick “Terror” Lekota has been implicated in dubious deals involving more than R10-million of taxpayers’ money.
A special investigation by the province’s public accounts committee earlier this month tabled a damning report into former economics and tourism MEC Ace Magashule, following eight days of hearings in which senior officials were called to testify.
The report, which details a web of unauthorised expenses and trampled procedures with Magashule’s department, is the second investigation into his activities as MEC.
The first – completed last year by the Free State government’s director general, Dr DB Setai – was sent to the police for investigation. Lekota fired Magashule in June, long before Setai completed his probe.
The dismissal split the ANC in the Free State, leading to Lekota’s “redeployment” to the National Council of Provinces. He was replaced as premier by former SABC chair Ivy Matsepe-Casaburri. Magashule, who was supposed to go up to the National Assembly, has been in political limbo since then.
A representative for the Free State attorney general said this week that the police commercial branch had still to finalise its investigation. It was reporting fortnightly on progress, but he did not know when charges would be formulated.
The public accounts committee investigation presented its findings in nine resolutions to the legislature:
l It found R7,78-million was transferred irregularly to the Free State Promotion Agency and the Free State Tourism Company, which were not registered as companies. Some of the money has been recovered. It recommended that the province’s Department of Finance, Expenditure and Economic Affairs attempted to recover the rest;
* It found that two officials were employed by the agencies and the combined payment for their services between September 1 and October 31 1995 was R32 492. However, the committee was satisfied with their performance and recommended that their salaries be authorised by the provincial legislature;
* It found that a senior official in the provincial tender board had allowed the two agencies to be established without taking corrective steps and recommended that controls in the board be improved;
* It resolved that the tender board re- examine the allocation of tenders, taking into account the policies of the government and attempting to empower disadvantaged communities;
* It discovered that the proceeds of auctions were not always paid into government accounts and in one case, resulted in the loss of R1,5-million. Legal steps have been taken to recover the money and the state attorney has received R438 000 so far;
* It discovered that services and goods to the value of R2,1-million and R112 000 had been given to the two agencies and recommended that the expenditure be authorised. However, there was no documentation for a further R174 000 spent and the committee recommended that if the money was not recovered within two months, charges be laid with the SAPS;
* It found R157 141 was received by the Free State Development Corporation that should have been paid into the provincial revenue fund. However, only R44 828 had to be recovered;
* It discovered that the corporation had granted loans of R1,6-million – loans authorised by Magashule. The loans were paid out without securities being obtained and no repayments were made. The amount outstanding, together with interest, now far exceeds R1,6-million. The committee could not establish whether Magashule made any financial gain when making the loans and recommended that effective measures are instituted to ensure such irregularities do not recur;
* The committee also heard of irregularities in the tendering and supply of cleaning agents for the Free State government by a senior official and recommended that disciplinary steps be taken against him and a lawsuit be instituted against the successful tenderer.
Magashule was not available for comment. But a spokesman for the provincial legislature, Jongi Ndakana, said: “At the moment Magashule is not being held responsibile for maladministration. Where he goes from here is not certain. The ANC is still waiting for our report before making a decison.”
The ANC’s national spokesman was not available for comment.