Irregular bookkeeping, corruption at Public Works

"Frankly, I have been lied to and deceived by people who, instead of serving the people of South Africa, were intent on lining their own pockets.” With these bitter words, Public Works Minister Gwen Mahlangu-Nkabinde made the shock announcement on Monday that a Special Investigating Unit (SIU) probe of her department had uncovered more than 40 cases of tender irregularities involving at least R3 billion. The SIU, which was called in to investigate last year through a proclamation by President Jacob Zuma, said o Monday that the irregularities involved leases for accommodation and buildings, prestige projects, which focus, among others, on looking after the president and his cabinet, 10 capital expenditure projects and general procurement irregularities. Senior ministerial adviser advocate Boogie Khutsoane said: “We are definitely concerned…(The R3bn) is money that would have been spent elsewhere.”

The number of officials involved would not be disclosed until the investigations had been concluded, because some cases could be referred to the Hawks for further investigation, while others might be dealt with through departmental disciplinary proceedings. This comes as acting director-general Sam Vukela has also been placed on special leave, pending an internal investigation of possible charges against him. While Khutsoane did not link this move directly to the R3bn irregularities, she indicated that he had been with the department for some time and would have to be accountable. This is the latest in a series of scandals to hit Public Works, including the saga over the police head office leases. The public protector found that both the public works minister and national police commissioner General Bheki Cele had acted unlawfully in the matter. It emerged last week that while Public Works had submitted an action plan to remedy the situation to the public protector, the Presidency was still weighing possible steps.

Yesterday, Mahlangu-Nkabinde promised action to clean up “a situation where serious irregularities had occurred” when she took over the portfolio 10 months ago, including tightening up lease processes. “I cannot wave a magic wand and cure the ills of corruption\ overnight. What has to be done is for the department to become more vigilant in ensuring that proper tender procedures are followed,” she said. She was resigned to the auditor-general red-carding her department. “Under the circumstances it would be unrealistic to expect that the department will be given a clean bill of health by the auditor-general. We know of irregular expenditure, what appears to be false bookkeeping and have discovered evidence of corruption by Department of Public Works officials.”