6.5 Responses In response the acting CEO informed the Committee that he would not be able to give a full account of the events as he was working in the Department at the time mismanagement occurred. However he responded as follows to questions raised: . He had a difficult time initiating disciplinary disciplinary action against offenders, but had support from the new leadership. The disciplinary hearings were PFMA and governance compliance related. A change management process was instituted to improve the morale of staff. . It would take the entity four to five years to return to profitability. A forensic investigation had been instituted and Delloite & Touche would report to the entity at the end of December 2011. . No staff member had received a performance bonus, and this affected their morale but there was a need to reward innocent and loyal staff members. . In January 2012, Infraco would enter into a commercial relationship with Neotel. . The ECS licence was vital in enabling the entity to supply connectivity to schools, hospitals, clinics and impoverished communities. . The Auditor-General could not find sufficient documentation to verify whether all procurement procedures had been followed. . The entity constantly received calls from suppliers claiming outstanding payments, and there was no supporting documents to verify debts.