Ndebele checks on accounting firm
07 Mar 2012
PARLIAMENT — Something was "amiss" in the Road Traffic Management Corporation's (RTMC) "irregular" R11 million appointment of auditing firm Deloitte to do a "financial cleanup", Transport Minister Sibusiso Ndebele told MPs yesterday.
Ndebele told the Standing Committee on Public Accounts the department was in talks with the SA Institute of Chartered Accountants (Saica) to evaluate the RTMC's appointment of Deloitte.
"We will be engaging Saica to assist on the evaluation of the appointment of Deloitte, who were hired irregularly to do what was then called a `financial cleanup' project, which resulted in irregular expenditure to the tune of R11 million," Ndebele said. "There is something amiss when a firm of Deloitte's status is hired in the way it was hired, to do the kind of work that results in the taxpayer being duped, and we therefore believe that this has to be investigated by the relevant body."
Ndebele said the RTMC's problems had been "tormenting" since its inception. The corporation had four CEOs in seven years. It followed that its stability had always been "suspect".
Ndebele, who appointed a task team to investigate the corporation in February 2010, said he had been inundated with "various complaints" about the then management and allegations of mismanagement at the RTMC since he started his term as transport minister in May 2009. The team's report, released in August 2010, was given to the police for further investigation. Ndebele said "possible criminal charges" would be laid against "various individuals and companies" implicated in the task team's forensic report.
Serious lapses of procurement procedures had led to R360 million in irregular expenditure. This figure included R200 million in e-Natis transaction fees that were supposed to have been paid to the department.
Ndebele said irregular expenditure — R360 million in the previous year — has been stopped, with new stability and improvements in RTMC's delivery. — Sapa.
07 Mar 2012
PARLIAMENT — Something was "amiss" in the Road Traffic Management Corporation's (RTMC) "irregular" R11 million appointment of auditing firm Deloitte to do a "financial cleanup", Transport Minister Sibusiso Ndebele told MPs yesterday.
Ndebele told the Standing Committee on Public Accounts the department was in talks with the SA Institute of Chartered Accountants (Saica) to evaluate the RTMC's appointment of Deloitte.
"We will be engaging Saica to assist on the evaluation of the appointment of Deloitte, who were hired irregularly to do what was then called a `financial cleanup' project, which resulted in irregular expenditure to the tune of R11 million," Ndebele said. "There is something amiss when a firm of Deloitte's status is hired in the way it was hired, to do the kind of work that results in the taxpayer being duped, and we therefore believe that this has to be investigated by the relevant body."
Ndebele said the RTMC's problems had been "tormenting" since its inception. The corporation had four CEOs in seven years. It followed that its stability had always been "suspect".
Ndebele, who appointed a task team to investigate the corporation in February 2010, said he had been inundated with "various complaints" about the then management and allegations of mismanagement at the RTMC since he started his term as transport minister in May 2009. The team's report, released in August 2010, was given to the police for further investigation. Ndebele said "possible criminal charges" would be laid against "various individuals and companies" implicated in the task team's forensic report.
Serious lapses of procurement procedures had led to R360 million in irregular expenditure. This figure included R200 million in e-Natis transaction fees that were supposed to have been paid to the department.
Ndebele said irregular expenditure — R360 million in the previous year — has been stopped, with new stability and improvements in RTMC's delivery. — Sapa.
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