Gauteng premier, Nomvula Mokonyane
Gauteng premier, Nomvula Mokonyane

Gauteng premier Nom-vula Mokonyane has released a damning report pointing to financial misconduct, irregular appointment of service providers and excessive payments in the provincial department of transport.

The irregularities have cost the department "a great financial loss and exposed the department to big financial risk."

Mokonyane said yesterday the report had been forwarded to the Presidency for further action.

"Both MEC for public transport, roads and works Ignatius Jacobs and former head of the department Sibusiso Buthelezi are not off the hook," she said.

With the Gauteng ANC elective conference looming, many see Mokonyane's timing for releasing the report as an attempt to thwart support for her rival Paul Mashatile.

Buthelezi, who was suspended and then later reached a settlement with his department, is Mashatile's ally.

The report centres on the construction of Jabulani Hospital in Soweto, the Impophoma project, an infrastructure support unit of the department established in 2006 to help small-scale construction firms and the procurement and hiring of service providers by Buthelezi.

l Irregular and unlawful" appointment of TT4, a group of consultants, without a proper bidding process. The six consultants were paid more than R20million over seven months in 2008.

l Buthelezi failed to request a tax clearance certificate from Ilima, appointed for construction of Jabulani Hospital. After cancelling Ilima's contract he appointed Maziya, Tsiya and Tau Pride/Moteko without following due processes and contravened government policy and the Public Finance Management Act.

The report said there was no indication of "skills transfer to the department for the monies paid".

l Another consulting firm, AcreSA, was "excessively" paid R231000 monthly. It received R1,3 million between June and October 2008.

l The appointment of attorneys Mncedisi Ndlovu and Sedumedi to provide technical and project management support to the Gautrain project.

The report said the appointment amounted to irregular expenditure and gave the attorneys "a blank cheque" since it did not specify the total contract amount.

The report recommends further investigation into the Kempton Park Hospital project and that Buthelezi's performance be assessed for the 2008/2009 financial year.