FRIDAY, 3.30PM
NORTHERN Province director-general John Malatji rresigned on Friday morning following the release of the Semenya commission report that found the provincial government had squandered at least R10-million on the irregular purchase of office buildings.
The Semenya commission was appointed by Premier Ngoako Ramatlhodi last year to investigate claims of irregularities in government procurement of certain immovable properties since 1994. In its report, released in the provincial capital Pietersburg today, the commission exonerated three MECs, but found Malatji had ignored financial control procedures.
The commission found that the provincial government squandered R10-million in the purchase of a building constructed for the safety and security department for R18,6-million in March last year. An evaluator appointed by the commission valued the building at R8,1-million. Plans were not submitted for approval before construction. There were not sufficient funds in the budget allocation for the purchase, which constituted an unauthorised expenditure. The department of public works did not obtain prior approval of the tender board for the purchase of the building, nor did it apply to the treasury for authority for payment.
Financial controls were circumvented and undermined. While there was no evidence of corruption or personal benefit, the procurement of the building might have caused the province fruitless expenditure of R10-million, the commission found. The commission also found irregularities in contracts for the construction of a legislative building and a legislative housing complex.
Among its recommendations was that the province should take disciplinary action against officials who compromised financial control systems. The report also said the province needs to give urgent attention to the training of government officals, without which the financial management systems will collapse.
Ramatlhodi said he accepts the commission’s recommendations and is prepared to act swiftly and decisively to address the problems identified. Disciplinary action against officials who flouted control systems will be investigated.