The Department of Communications has tasked independent investigators to look into the allegations of possible corruption and maladministration at the Universal Service and Access Agency of SA (USAASA).
This follows a letter sent by United Democratic Movement leader Bantu Holomisa to president Jacob Zuma on 7 June alleging he has "disturbing information about the looting of state resources" at the agency.
Holomisa writes that he has documents casting both the department, which overseas the agency, and USASSA in a "very negative light".
Among his allegations is that a contract was awarded, not delivered upon, and the contractor was overpaid.
In addition, Holomisa writes that CEO Zam Nkosi had worked with chairperson Pumla Radebe while both were at Pikitup and that Nkosi uses Radebe as a reference on his CV, but Radebe did not recuse herself from the appointment process. He alleges Nkosi did not qualify for the position.
The department says the independent investigators have been briefed and are expected to produce their report in four weeks.
"We take allegations about possible abuse of funds allocated by Parliament very seriously and we have consulted with the board. We are working tirelessly to restore the public's faith in government institutions that are established to serve the citizens," said deputy minister Stella Ndabeni-Abrahams.
The ministry will not comment further until after the conclusion of the investigation. Holomisa called on Zuma to suspend USAASA senior management, the department's DG and then minister Dina Pule, who was replaced last week by Yunus Carrim.
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