NELSPRUIT – The CEO of the agency tasked with developing Mpumalanga’s economy says he owes nobody an explanation for how he runs this taxpayer-funded organisation. Adv Boyce Mkhize, chief executive of the Mpumalanga Economic Growth Agency (MEGA),says “Prove to me where I have transgressed and I will answer.” This follows on allegations of irregularities in the running of the agency.
“If there are any irregularities, they are dealt with through appropriate processes of investigation by appropriate authorities and not via the newspapers. In this instance, the board would be the appropriate authority to deal with the allegations. The MEGA board of directors can then decide what to do with the information at its disposal.”
Mkhize admits that currently there are fewer board members than the nine required to form a quorum and take any votes. According to a letter written to the board by Mkhize on February 21, following the resignation of three board members, there are only eight. Despite this, he said their primary function of oversight will continue.
Said irregularities pertain to supply chain-testing performed on the agency by Deloitte, evaluated in terms of irregular expenditure in respect of awarding tenders against legislation of treasury, PFMA, PPR and other relevant practice notes to determine compliance with relevant legislation, found that the agency had incurred total irregular expenditure amounting to R2 million in 2013 of the 2013/14 financial year. Of this, R99 889 was as a result of the preferential points scored by a bidder not being followed in awarding a tender, and R1,9 million was due to three quotes not being obtained.
Mkhize explained that these were inconclusive since they were not the final findings made by the accounting firm after consultation with MEGA management to explain the expenditure away.
Questions about anomalies have also been raised by the National Education Health and Allied Workers’ Union (Nehawu). In a letter in this newspaper’s possession, Mr EM Mphafudi, chairman of its Ehlanzeni region – MEGA, noted concerns the union has.
For instance, there is a huge presence of staff from Deloitte within MEGA while indications are they are increasingly taking over functions for which staff is employed by the institution. For example, the whole finance component is taken over by Deloitte whilst the institution has both CFO and staff within the finance component.
The union also said it was dismayed about the fact that a number of employees who intended to resign were instead applying for or beng given severance packages despite the fact that, in terms of the pension arrangement applicable within the organisation, voluntary severance packages were not provided for.
Mkhize explained that he did not wish to engage with organised labour via the press.
“There are established processes and avenues for dealing with unhappiness of labour or the employer at an engagement forum level. It is only correct to respect such processes and not engage through the media.”
While it is not untoward for the CEO, as the accounting officer, to review the evaluation and recommendations by tender committees, documents show that the tender for a project management team related to the province’s bulk water infrastructure project, which was re-evaluted by Mkhize, was never awarded.
“We issued the tender and it was withdrawn because we no longer needed them. We could do it internally. Tenders are issued and withdrawn all the time,” he explained, rejecting claims that the project was stalling as a result of meddling.
Yet, Mkhize refuses to make public, his delegation of authority agreement, which gives the CEO of such an entity the power to award tenders up to a certain amount without board approval.
According to his letter to the board, 15 bulk-water tenders had been issued at the time of writing in February. The total values amounted to R108,6 million of which R80,5 million was approved by the board and R28,2 million was approved by the CEO.
“I must record that the allegations levelled against me are devoid of any truth. We have nothing to hide but we refuse to be drawn into a public spat on unfounded allegations on matters that can readily be resolved within the confines of established processes,” he said.
Read all about MEGA’s progress with its bulk water infrastructure in the Lowveld here.
