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A Gauteng municipality has been advised to consider reclaiming money paid to a chief financial officer (CFO) and former municipal manager because he allegedly misrepresented his qualifications.
A report by Gobodo Forensic Investigative Accounting recommends that Gauteng’s Lesedi local municipality consider recovering the more than R1.2 million per annum paid to Paul Mpele since his appointment in May 2016.
Gobodo said a legal firm should be able to properly advise the Heidelberg municipality on the feasibility of this move.
The 21-page draft report, released on 29 November, described Mpele’s conduct as grossly dishonest in that, at the time of applying for the position of CFO at the municipality, he did not have the qualifications that he claimed to have in support of his application.
Further recommendations include that the municipality consider instituting disciplinary action against him, as well as “registering a criminal case for possible fraud in relation to his misrepresentation of his qualifications in his CV submitted to the municipality”.
Following an investigation earlier last month, Gobodo concluded that in his CV submitted to the municipality for the position of CFO in July 2015, “Mpele factually misrepresented having a BCom Accounting degree from the University of Durban-Westville, while in fact he had only attained a BCom”.
Gobodo found that he did not have “an honours degree in Generally Recognised Accounting Practices (GRAP) from the University of Stellenbosch”.
Mpele did an executive short course at Stellenbosch, which has a National Qualifications Framework (NQF) recognition of level 8. He argued that it was the equivalent of an honours degree.
The firm also found that he did not hold membership of the Institute of Internal Auditors South Africa, which would have entitled him to use the title of General Internal Auditor (GIA).
The firm also found that he has not been a registered accounting officer with the Institute of Accounting and Commerce since 2008 and could therefore not claim in 2015 to have been a registered accounting officer.
According to the report, Mpele had told Gobodo that the noted factual misrepresentations were “not done intentionally or deliberately but as a result of his own interpretation or understanding”.
However, Gobodo said his explanation appeared improbable or implausible. Gobodo said Mpele “conceded that he has not been conferred a BCom Accounting degree by the University of Durban-Westville”.
But he “claimed such on the basis of having attained a BCom at the University of Durban-Westville, which, if taken together with his Accounting III modules attained at the University of Free State, in his view equate to or are equivalent to a BCom Accounting degree”.
He conceded, however, “that neither UDW nor UFS has conferred such a degree on him”.
The report said that Mpele, whilst agreeing that the actual certificate issued by the University of Stellenbosch does not record such to be an honours degree or certificate, “contends that he recorded such as an honours degree based on the fact that the course is recognised as an NQF level 8 qualification”
According to the report, he also conceded “that he was at the time of applying for the position of CFO not an accredited GIA nor a registered accounting officer, and that his only reason for referencing said professional membership was to evidence that he had held such designations or membership in the past”.
Gobodo said that whilst it was not disputed that Mpele may have met the minimum requirements for the position as advertised, “that, but for his misrepresentation with regard to the BCom Accounting degree, he would not have been short-listed”.
The Sedibeng ANC has decided that the mayor, Lerato Maloka, had mishandled the issue and has recommended that the mayor and the chief whip “be redeployed with immediate effect to stabilise the municipality”.
Mpele told City Press that he had not seen the Gobodo report, but on the basis of the extracts sent to him it appeared to contain “deliberate inaccuracies”.
“My understanding of misrepresentation is when a person intentionally presents something he does not have. In my case I have not done so, based on the requirement of the position.”
He said that “the only expert and authority on qualifications is the South African Qualifications Authority (SAQA), which body to date has, to my knowledge, not been approached to present an authoritative assessment of my qualifications. I further deny any and all allegations contained in the purported forensic report with the contempt it deserves.”
He said that when he first applied for the post the minimum qualification and experience required for the CFO of a Grade 4/5 municipality was a BCom degree or a degree in finance, and that a CA qualification would be an added advantage.
He said the attacks on his credibility “stem from a number of irregular, inappropriate and illegal advances from the time I was appointed CFO at Lesedi municipality”.
He alleged that several ANC and opposition DA and EFF councillors “constantly pressurised” him to “dispense personal favours to themselves or their connections, which I consistently turned down”.
Maloka said the report was inconclusive and the recommendations flawed.
She was unsure about its status, “because they were not clear during a council meeting last week whether it was a draft or final, and had not subjected Mpele’s qualifications to SAQA’s verdict as per the council’s request”.
She also questioned the procedure followed and the reasons why Gobodo “refused to indemnify or assure the council of their work should it fall short”.
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