THE SMART NEWS SOURCE | Feb 09 2010 18:35 | LAST UPDATED Feb 09 2010 18:35 |
|
Gross mismanagement, incompetence, fraud and outright theft are bleeding Robben Island dry, according to a forensic audit of the world heritage site completed this year. The report, kept under wraps until now but shown to the Mail & Guardian this week, has led to a raft of disciplinary charges against the island’s top management and an investigation by the Special Investigating Unit of the National Prosecuting Authority. “The management of the island treated it like their own private ATM,” an angry board member said this week. The report by consultancy Orca identifies a R25-million hole in the accounts of Robben Island Museum (RIM), an extraordinary series of managerial lapses and evidence to suggest criminal misconduct. “For every rand received from tourism revenue R2,50 was paid to staff. Salary increases were in excess of inflation and salary increases to executive management [were] 259% between 2004 and 2007. General salaries increased by 29% between 2006/2007,” the audit report found. “Costs [grew] six times faster than revenue.” At the centre of the saga are the year-late delivery of a new ferry from a Cape Town boat-building company, Farocean Marine, and the suspended RIM chief executive Paul Langa -- the former head of security at the ANC’s Luthuli house headquarters and director of numerous businesses. “The process of managing the acquisition of the ferry … was grossly mismanaged,” the audit states. The ferry, which cost just more than R22-million, does not even appear on the island’s asset register. Delivery was due in February 2007 but took place only in February 2008. The contract, signed by Langa, made no provision for penalties. The audit report queries the apparent payment of an extra R1,7-million for the R21-million vessel and missing details about the purchase. “There is no audit trail reflecting the capitalisation of the RIM’s most material asset ... due to lack of documentation we were unable to confirm that RIM deducted the penalty of 3% of the contract value of the boat due to late delivery,” the report says. The forensic audit concludes that “the agreement between the RIM and Farocean for the construction of the ferry is overly skewed in favour of Farocean; we couldn’t ascertain which attorneys drew up the contract and whether they were appointed by Farocean or RIM”. But Farocean’s Peter Kuttel says the company has not been paid “in full” for delivering the ferry. “The RIM keeps on saying that it doesn’t have the money to pay me. I believe it will, though. The expectations of the management were too optimistic when they ordered the boat. Just to get the plans okayed took six months,” Kuttel said. There also appears to have been massive theft of fuel from the ferry. On May 9 the ferry filled up with 3 107 litres of diesel. For the next three days the ferry undertook no trips. On May 13 the ferry made six trips to the island. For this “the expected fuel consumption would be in the order of, at most, 1 500 litres of fuel. Yet on May 14 the boat refuelled with another 3 111 litres ... We believe that there is a strong inference that fuel was stolen [siphoned] off the ferry,” says the report. The island’s curio shop also appears to have been a financial black hole. “Nineteen moneybags went missing on 19 different days,” the report records, while the shop’s bank records are out of sync with its accounting records to the tune of R9,2-million. In February Langa, chief financial officer Nash Masekwameng and chief operating officer Denmark Tungwana were suspended and have since been informed that they will face disciplinary charges. The decision to press charges was made despite a recommendation by Minister of Arts and Culture Pallo Jordan that they be allowed to resign quietly to avoid “embarrassment”. Letters from Robben Island chair Naledi Tsiki to the three managers detail charges of negligence and gross financial mismanagement. Among other charges, Langa is cited for poor work performance, failing to implement a fraud-prevention plan, gross financial mismanagement and receiving unauthorised salary increases. Tungwana is accused of failing to disclose interests in at least eight companies. Other charges include allegations that he misled a special audit committee that was probing the ferry contract. He allegedly failed to investigate the financial viability of the ferry plan, claimed a penalty clause had been invoked when it had not and failed to appear at project meetings . Masekwameng faces wide-ranging charges including misrepresenting his qualifications for the job of chief financial officer, accounting failures and receiving unauthorised salary increases. “The employee gave out that he was sufficiently qualified and experienced to perform the assigned duties when he knew, or should have known, that [he] did not have the required qualifications and/or experience,” Tsiki’s letter reads. Among 18 separate charges of negligence levelled at Masekwameng are failure to implement basic accounting procedures and failure to manage costs. None of the suspended RIM employees could be reached for comment. Langa is on leave in Sweden. The bungled Australian connection Bill Harry was worried about bidding for the construction of a new Robben Island ferry. His Sabrecats yard, in Freemantle outside Perth, supplied the Makana and the Aushumato, which took over from the creaking prison-service tubs that serviced the island in the late 1990s. But he was concerned about the stringent empowerment rules surrounding the bid. “I explained to [Robben Island management] that we’d be non-compliant -- we just don’t have the people in Australia who were disadvantaged by apartheid to do the work,” he told the Mail & Guardian. “It was going to cost us R100 000 to get the tender.” The reply from Robben Island Museum, in an email obtained by the M&G, was that this was no problem -- foreign bidders were exempt from BEE requirements. In fact, management abruptly announced, they wanted to visit Sabrecats and inspect a 30m vessel under construction there that they thought might fit the bill. Harry postponed a trip to the Fort Lauderdale boat show, rented a minibus for the seven-person delegation and prepared to play the gracious host. When the delegation arrived, he said, they told him he had 90 minutes to provide breakfast and show them his operation before driving them to the airport for an onward flight to Melbourne. It isn’t clear what they did there. “I kept telling them they had the wrong boat anyway,” Harry said. “I gave them the option of two smaller ones with more passenger capacity for a lower price than [I quoted] in my tender.” Eventually in December 2006 he was given 48-hours notice to appear before the tender committee in Cape Town and answer questions. “It lasted half an hour and I flew back to Australia on the last available flight before Christmas,” he said. After three months he received a letter saying his tender had been rejected because it failed to comply with empowerment rules. “I kept the drawings around here for a while but it made me so angry that one day I just took it and threw it in the bin. I’ll never do business with Robben Island under the current management again.” Island's management in hot water The following is a shortened version of the letter Pallo Jordan sent to Robben Island Museum council chairperson Naledi Tsiki: "It’s clear that top management of Robben Island Museum [RIM] have not fulfilled their mandate in the best interest of this national asset and World Heritage Site to the extent that RIM is technically bankrupt. “In considering the matter, cognisance must be taken of the principle of apportionment of blameworthiness to the extent that the CEO [Paul Langa] must be held more culpable than the COO [Denmark Tungwana] and the CFO [Nash Masekwameng]. “It’s deemed prudent that the council pass a resolution to approve the final report and charges and further that the CEO, COO and CFO be given the option to resign with immediate effect in lieu of being charged and facing a disciplinary hearing, on conclusion of which the likely sanction would be dismissal. “The exercise of this option will spare RIM and the department of arts and culture adverse publicity, and also spare the CEO, COO and CFO the ignominy of being charged and subjected to the humiliation of a disciplinary hearing. “Although the RIM top management advanced a multitude of reasons for the [R25-million] deficit, it must be conceded that the top management failed dismally to provide the requisite leadership and sound financial management necessary to maintain RIM as a declared cultural institution and World Heritage Site ... “The department had a meeting on 25 June 2008 with Michael Leaser, a regional head of the special investigation unit of the Western Cape, in order to discuss the matter of further allegations made by a member of staff of RIM, including allegations of tender irregularities, financial mismanagement and other aspects. “It’s anticipated that the department will receive this information within the next few days and it’s envisaged that this information will be passed on to [forensic audit firm] ORCA to further investigate. “Currently RIM is facing litigation in the region of about R3-million in respect to photocopies that were procured without following the necessary procurement process. “The issue of the overpayment of salaries and the alleged refusal to pay back must also be investigated by ORCA.” TOPICS IN THIS ARTICLE
Comments
Just another sad case of corruption, affirmative action and jobs for pals which we tax payers have to foot the bill for with all the rest of the crap the ANC are dishing out these days. Long live BEE hooray for Zuma may God help us all.
Ray Miller on August 1, 2008, 10:02 am
Theft, corruption with no conscience, the hallmarks of our so-called rainbow nation. O yes, and the few rich ones get richer and the growing number of poor ones get poorer. And the best the ANC seem to come up with to "remedy" the situation is to make a PR designed visit to a camp of poor people and blah, blah, blah about it from the comforts of their own positions of undeserved wealth.
jaycee van rooyen on August 1, 2008, 10:58 am
This is so typical of the nature of the so called people put into positions of power - they bleed coffers dry for their own greed - and the very icon they were put in power to manage was not regarded at any one moment to be the largest part of the struggle that got them to where they would lead better lives. The broad disregard for anything and anyone in the name of personal greed and power. So the corruption goes on. Moan moan - make an example of the bastards.
Gordon schoneberg on August 1, 2008, 11:40 am
Most of what is said in the article may be proved to be true in a formal forum. The same may be said for most of the daily dose of similar stories dominating our democracy the past ten years of restructuring the corrupt and evil system of apartheid which lacked all morality and decency. Some of us entrusted to do the restructuring unfortunately succumbed to laziness opted for the saying 'why reinvent the wheel' to the absolute liking of the apartheid administrators and beneficiaries. These lazy and corrupt 'donkeys' who are mainly political appointees are not however unique to RSA. The UK, USA and others abound. Checkout the BAe System and other American corruption scandals. To read the comments from the two compatriots does not help. South Africa present remain the best thing that could have happened to the world. We are not only the best but better then the rest too. It is for this reason that you read all these bad stories which are actually good stories for our young democracy. Please react and comment but let us all move from the same platform. South Africa First and Foremost.
Derrick Grootboom on August 1, 2008, 12:08 pm
Typical ANC leadership , "give them a finger and they take the whole arm"
Maybe they should re-open part the prison, they the management can "book" themselves into their own cells. Then when tourists arrive they can be given a special tour showing what the leadership of this country is capable of. Put the guilty on public display and ridicule... maybe then the oversea's foreign governments will wake up to the prolifiration of corruption that is drowning this country.
Wesley R on August 1, 2008, 1:29 pm
This is extraordinary (though perhaps not in the light of all the other looting that we hear about in the news). Not least of the shocking facts is Pallo Jordan's suggestion that the looters, liars and incompetents not be disciplined but allowed instead to resign quietly. Sure, we know that government criminals generally escape the consequences of their behaviour; however, it is perhaps more critical that, once again, the ANC has tried to evade accountability to the tax-paying SA public. Just what is it that drives ANC and government officials inevitably to be crooks or supporters of criminality?
Citizen Mntu on August 1, 2008, 2:04 pm
Gross mismanagement, incompetence, fraud and outright theft
Amazing most headlines in South Africa starts with similar words. They probably have a template and just change the subject. Gross mismanagement, incompetence, fraud and outright theft - Government Gross mismanagement, incompetence, fraud and outright theft - Fuel Gross mismanagement, incompetence, fraud and outright theft - Jobs Gross mismanagement, incompetence, fraud and outright theft - Sport Can I apply for a job as a journalist. Stories will be easy to cover and will be pretty accurate too.
Anony mous on August 1, 2008, 6:10 pm
I would like to know why did it take so long for corruption on such a large scale to be actioned by government. The Minister should have taken action long, being sensetive to fellow comrades etc must automatically dissolve when they betray and manipulate the current South Africa that many bled, suffered and died for. Mr Grootboom needs to call a spade a spade.
John Doe on August 1, 2008, 7:12 pm
Well, the affirmative-actioned people in charge, like all "strugglistas", didn't struggle in order to be poor, remember?
Jon Low on August 2, 2008, 2:19 am
As I perused the comments by what appeared to be mostly white South Africans, I was struck by the "woe is us" mentality. Also, they seem to be saying that only representatives of the ANC are corrupt in South Africa. I'll bet they weren't so sad that the thieves were of a certain hue during the reign of the white supremacist capitalist patriarchy. Oops, I'm sorry - they're still in charge. I forgot.
Gary Nelson USA planetary citizen
gary nelson on August 8, 2008, 1:30 pm
Gary Nelson USA said:
"As I perused the comments by what appeared to be mostly white South Africans, I was struck by the "woe is us" mentality. Also, they seem to be saying that only representatives of the ANC are corrupt in South Africa. I'll bet they weren't so sad that the thieves were of a certain hue during the reign of the white supremacist capitalist patriarchy. Oops, I'm sorry - they're still in charge. I forgot." Well well, yet another armchair expert! Say, why don't you move to South Africa and go and get a taste of the ANC for yourself? I'll bet that, like all bleeding heart liberal idiots before, you too will sing a different song once you are exposed to gross incompetence and record level crime at the hands of the beloved ANC! Until then, why don't you just keep your uninformed idiotic comments to yourself, ok? There is NO comparison between the Apartheid government, who actually did a GOOD job, and the ANC circus. More and more black South Africans are saying they were better off under the previous government. Why is that, do you think? Why would blacks, who 'suffered' under a "white supremacist capitalist patriarchy" prefer that to the current day ANC? Why did South Africa go from average levels of crime, to holding the top spots on the crime ladder IN THE WORLD in just 10 short years? You have got to peel those liberal boo-ha eyeflaps off and ask the right questions if you want the truth.
Joe Activist on August 11, 2008, 3:48 pm
click here to log in
M&G Online Comment Guidelines In Brief
Advertising Links
|
2,3-million titles to choose from.
iPod nano 16GB - Black, Was R2,499.00 Now R2,299.00! Save R200!
46 000 DVDs and Blu-Ray on sale now!
100s of new releases now in stock. Get the new Sade & Bon Jovi albums.
Widest toy range and unbeatable prices!
AdvertisementsAdvertising links |
|||||||||||||||||||||||||||||||






