I have been advised by USAASA as follows:
The SIU investigation into USAASA relates to maladministration and irregular expenditure. The area or subject of investigation is as per the table below:
No |
Subject |
Outcome |
(a) |
The alleged irregular appointment of Mr Zami Nkosi, as the Chief Executive Officer (CEO) of USAASA |
The SIU found that the appointment of Mr Zami Nkosi as the CEO was irregular and as such USAASA incurred irregular expenditure in the sum of R255 211.27. Mr Nkosi’s contract expired before the report could be released. Therefore, his contract could not be nullified as legislatively required.
Resulting from this, the SIU referred the matter on the irregular expenditure of R255 211.27 to the National Prosecuting Authority in respect of 3 former Board members of USAASA (2013/2014 and 2014/2015 financial years) on 16 November 2017. |
(b) |
The alleged funding by |
There was no funding of irregular expenditure in |
|
USAASA, by way of a subsidy in the amount of R500 million, to CellC for the construction and expansion of an electronic communications network for the Emalahleni Local Municipality. |
respect to the CellC investigation. |
(c) |
The appointment of Mthinthe Communications (Pty) Ltd in respect of phase 2 of the Rapid Development Programme |
The SIU found that the appointment of Mthinthe Communications (PTY) Ltd in respect of phase 2 of the Rapid Development Programme was irregular.
Therefore, the SIU found that the Accounting Authority of USAASA at the time represented by the former Board (2013/14 and 2014/2015 financial years) were grossly negligent and / or willfully negligent in the execution of their fiduciary duties. The SIU further found the evidence substantiating the commission in offence of financial misconduct as envisaged in Section 86 (2) of the PFMA. |
|
|
Resulting from the above, USAASA incurred irregular expenditure on appointment of Mthinthe Communications in the sum of R33 914 567.84. The SIU referred the matter to the National Prosecuting Authority as the evidence pointed to the commission of an offense of financial misconduct as envisages in Section 86 (2) of the PFMA on 16 November 2017. |
|
|
USAASA contravened the following: |
|
|
SCM policy. |
MS STELLA NDABENI-ABRAHAMS MINISTER