/ 19 March 2004

Facelift for NDA as probe ends

The National Development Agency (NDA) has appointed a new board of directors and a forensic investigation into its affairs is almost complete as the organisation seeks to forge a fresh and clean image for itself.

The government last year instituted an investigation into the organisation after allegations of corruption, misuse of funds and conflicts of interest involving its leadership were made by staff members.

NDA CEO Delani Mthembu and chief operations officer Pule Zwane were then suspended. The investigation into the NDA was supposed to take about two months but has dragged on for five months — with both officials at home on full pay.

In October last year Department of Social Development Director General Vusi Madonsela promised the investigation would be completed within weeks. It is now expected to be completed at the end of the month, when a final report will be handed to Minister of Social Development Zola Skweyiya, under whose department the NDA falls. In the meantime, Skweyiya has seconded three senior people from his department to run the agency’s operations.

NDA interim administrator Vukani Mthintso said the delay in finalising the investigation was caused by a desire to be careful about the outcome. ”If any of the people implicated are found guilty of anything, we must ensure we have a proper case against them,” said Mthintso.

”If not, we must confidently be able to say: ‘No NDA money was wasted’. A quick but improper investigation will not help the NDA in the long term. But, in the meantime, we have stabilised things and it has been business as usual.”

He pointed out that, despite its problems, the NDA has approved 27 new projects between November and February. ”The new board will come up with a strategy about tightening management systems,” Mthintso said.

Some of the new board members include recently elected South African National NGO Coalition (Sangoco) president Marcia Manong, Kellogg Foundation head and former Black Consciousness Movement leader Malusi Mpumlwana and George Chaane, who works for the African National Congress.

In May, Skweyiya wrote to the NDA complaining that the agency was spending more money advertising itself than on delivering to the communities, and in September he publicly voiced his unhappiness about the conduct and image of the NDA after repeated leaks about the misuse of funds.

One of the more embarrassing incidents included a situation where R90-million given by central government to the NDA went into the private account of the NDA’s finance director.

In another incident, the former NDA management last year contracted an intelligence company to vet staff and investigate other NGOs. Towards the end of last year, eyebrows were raised when the NDA gave Sangoco R800 000 to help host its national NGO Week.