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Whistle blown on comms dept fraud

Kimberly Guest
By Kimberly Guest, ITWeb contributor
Johannesburg, 07 Sept 2007

A senior executive at the Department of Communications could be investigated following allegations of fraud and "job piracy".

ITWeb has in its possession a copy of the letter sent by an unnamed whistle-blower to the director of public prosecutions.

The letter was also copied to public service and administration minister Geraldine Fraser-Moleketi, Parliament's standing committee on public accounts (Scopa) chairman Themba Godi, Public Service Commission (PSC) chairman Prof Stan Sangweni, the director general in the Presidency, and the auditor general.

Selling jobs

According to allegations made in the letter, the communications executive - whose name is known to ITWeb - used new employees to skim money from the department's coffers.

One new employee - whose name is also known to ITWeb - is alleged to have received numerous daily cash deposits into her bank account. The whistle-blower alleges the employee was then required to transfer the entire amount into a car dealership's bank account.

The whistle-blower calls this "job piracy", which he defines as "fraud relating to recruitment and the allocation of tenders relating to projects within the HR department".

"[The payments] are highly likely to be kick-backs and bribes from tenders in [the executive's] unit, as well as 'thank yous' from the appointments, promotions and counter-offers of the people listed in this letter," says the whistle-blower.

Repeating history

The whistle-blower claims this is not the first time the communications executive has been the subject of an investigation.

It is alleged that the PSC chairman has previously found the executive to have "erred" in the employment of four officials.

The whistle-blower adds: "The pattern is that she irregularly employs, promotes and counters the job offers of those who in turn pay her."

The whistle-blower alleges the job-piracy scam extends to other governmental departments, including the Department of Environmental Affairs and Tourism.

Last month, ITWeb reported the Department of Communications had a 37% vacancy rate.

Investigating

Meanwhile, communications minister Ivy Matsepe-Casaburri has responded to questions presented by Democratic Alliance spokesperson on communications Dene Smuts.

"I have been informed about these allegations. I received a report on a desktop audit by the PSC that assessed the merits of the allegations pertaining to the appointments that have been made and their recommendations thereof," she said in a written response to Parliament.

According to Matsepe-Casaburri, the PSC has advised that consultations be held with the state law adviser on some of its findings prior to any action being taken.

Smuts says these allegations could explain some of the department's appointments.

"It has been clear for some time that the quality and qualifications of many of the department's personnel - with notable exceptions like Dr Harold Wesso - is not up to the standard one expects from a key government department which can make or break SA's communications sector. If [the allegations] are found to be true, it would explain the poor quality of the appointments," she says.

The minister also noted that director-general Lyndall Shope-Mafole personally participates in all interviews of the senior management service and authorises all appointments in the department.

"I have asked for, and received, her report on all these matters, which I am still studying. The DG has also informed me that she has invited the PSC to discuss the matter, as this will enable the commission to get a clearer perspective on the matters than is possible from a desktop study," says Matsepe-Casaburri.

However, Smuts retaliates: "The revelation that DG Lyndall Shope-Mafole is directly involved in appointments and intends to 'explain' them to the PSC takes the problem to a new level. If these allegations are true, Matsepe-Casaburri better act fast to rid her department of the root of the problem."

Outside intervention

Scopa chairman and African Peoples Convention MP Godi says the committee is also looking into the allegations.

"We have a group looking into the matter. I expect this group will report back to us in October. However, if these allegations are true, they are very, very worrying," he says.

Meanwhile, auditor general spokesman Africa Boso says the department is unaware of the matter.

"Allegations of job scams in government departments have not come to the AG's attention. Such allegations should be viewed as a whistling-blowing attempt against those allegedly involved in criminal activities. As it is not in the normal course of an audit process to detect if such alleged acts of fraud and misconduct are taking place, crime-combating agents will be better equipped to follow up on such claims," he says.

At the time of publication, the National Prosecuting Authority had not responded to ITWeb's queries on whether it had received the letter and whether it was following up on the allegations.

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