/ 26 January 2010

Graft probe for KZN social development dept

Forensic investigators employed by KwaZulu-Natal’s (KZN) social development department have recommended that 163 project managers be charged with fraud, officials said on Tuesday.

Nine of the department’s employees also face internal disciplinary hearings, provincial finance minister Ina Cronje and provincial minister of social development Meshack Radebe told journalists in Pietermaritzburg.

The investigators further recommended certain bank accounts be frozen. The matter had been referred to the South African Police Service’s commercial crimes unit, they said. The alleged corruption was happening in the department’s sustainable livelihood projects, which the department ran with NGOs.

The Democratic Alliance’s John Steenhuisen said the party was disappointed that the full forensic report was not released, as some of the investigations were at a sensitive stage.

“This report must be made available immediately after the sensitive aspects have been finalised,” he said.

Mentioned in the report were major problems with financial management controls and asset management, he said.

“The report also shows that there was collusion between officials of the department, members of various organisations and suppliers in perpetrating the alleged offences.” — Sapa