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It’s been nearly a month since the Public Protector instructed the KwaZulu-Natal premier to take action against director-general Dr Nonhlanhla Mkhize over a tender for memorial services for former president Nelson Mandela, but newly appointed premier Sihle Zikalala is “still waiting” for the documents.
Public Protector Busisiwe Mkhwebane’s report into the R70-million tender was scathing. She instructed the premier to “take appropriate action” against Mkhize, who at the time of the memorial services tender was based in Mpulamanga.
Mkhwebane said in her report that she investigated a complaint lodged by an individual based on a City Press story that was published on March 16 2014.
Mkhize was Mpumalanga director-general when the province hired celebrity Carol Bouwer’s events management company – Carol Bouwer Productions – to host memorial services shortly after Mandela’s death on December 5 2013.
The tender was not advertised and Mkhize, said Mkhwebane’s report, personally phoned Bouwer and gave her the job after her company was chosen from service providers on a database and there was no appointment letter issued to her.
Bouwer, who was in Malaysia at the time, arrived in Mpumalanga within 24 hours after Mkhize’s call and started work even before Mkhize had obtained approval from the finance department to deviate from following procurement processes because the memorial services were considered an emergency.
The Hawks are also on the case
The Hawks had been investigating a case of violation of tender procedures in the memorial services since 2016.
“The investigation,” said Hawks spokesperson, Hangwani Mulaudzi, “is at a final stage and a few loose ends need to be tighten up before the docket is sent to the director of public prosecutions.”
A source within the unit said that “money flow in the project was too bad.”
Carol Bouwer Productions was paid R44.2 million for the work while other service providers were also paid – but there’s no evidence to show how much.
Mkhwebane has recommended that KwaZulu-Natal premier Sihle Zikalala, must “take appropriate action” against Mkhize within 14 days from the date of the report, which was released on May 9.
The report found that Mkhize violated prescripts of the Public Finance Management Act and treasury regulations.
Zikalala’s spokesperson, Thami Ngidi, said that the newly appointed premier had not yet received the report.
“The Public Protector gave the report to the former premier [Willies Mchunu]. Once Premier Zikalala has received that report as part of handover; as well as the letter from Mpumalanga province, he will then look on how to deal with the matter,” Ngidi said.
Mkhize did not respond to questions emailed to her personally and via her office.
Mpumalanga cabinet defended the splurge
The Public Protector’s recommendation re-opens the matter after the then Mpumalanga cabinet defended the splurge and tried to sweep it under the carpet, even though it admitted that the costs for services and goods for the memorial services were “exorbitant”.
The cabinet decided against investigating the memorial services expenditure and passed the matter to the provincial legislature. The legislature could do nothing about it because its term of office was ending on May 7 2014, after the general elections.
Mkhwebane’s report revealed that the cabinet could have been covering up its own flaws in handling the matter since a political committee comprising MECs was part of organising the events.
Former finance MEC Madala Masuku approved the budget of R70 018 000 on December 6 2013 before the deviation from procurement processes was approved.
Mkhwebane’s report also found that:
• Other service providers on the Mpumalanga database were overlooked and there was no proof that they could not do the job;
• A service level agreement between government and Carol Bouwer Productions was signed and approved after the company had already commenced work;
• No document outlining how the R70 million budget was arrived at was given to provincial Treasury head of department Nombedesho Nkamba;
• The office of the premier did not have control measures such as supply chain committees in place to utilise the R70 million and therefore it was irregular expenditure;
• The expenditure was not reported to the Auditor-General and National Treasury as irregular expenditure; and
• Payments regarding the event were made directly from the bank without following the process to capture invoices and keep records.
“The allegation that the Mpumalanga office of the premier irregularly appointed Carol Bouwer Productions to manage the [memorial service] is substantiated,” Mkhwebane said.
She also said that the allegation that the R70 million was irregularly spent was also substantiated.
Mkhwebane said that Premier Refilwe Tsipane must write to Zikalala to take appropriate action against Mkhize.
Tsipane’s spokesperson, Zibonele Mncwango, could not confirm if Tsipane had done so.
Bouwer did not respond to written questions sent to her office.
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