Charge them all, ANC caucus says of Covid-19 fund fraudsters

Parliament MP and ANC Chief Whip Pemmy Majodina has called for corrupt individuals in government and the private sector to be charged for abusing Covid-19 emergency funds.

Indicating the immediate action by the caucus to strongly condemn the actions of those individuals who acted in their own subjective interest with no authority to appropriate resources – destined to alleviate the Covid-19 pandemic, Majodina said ANC study groups would convene to call the portfolio alongside selected committees to take up issues raised in the AG’s report, for the period ending July 31, 2020, which reflected substantive transgressions and flouting of PFMA (Public Finance Management Act) regulations.

This is in relation to the abuse of funds in the supply chain processes of government which, according to the caucus, were amplified by the introduction of emergency procurement processes.

The caucus, after noting government’s risk-adjusted strategy intervention which saw the country move from Level 5 of the national lockdown to Level 2, said it maintained the constitution on procurement which called on organs of the state on goods and services to be fair equitable and cost-effective.

Noting that the AG’s report found that there was a blatant disregard for the Constitution, especially in relation to the procurement of personal protective equipment (PPE), Majodina stressed that the ANC caucus was concerned by the findings, which exposed malpractices which according to the AG were “clear indicators of fraudulent activities”.

The report highlighted poor record-keeping and an inability to coordinate and oversee multi-departmental agencies.

Despite checks and balances in place, the measures were insufficient to deter wrongdoing especially in the procurement of goods and services.

While the first AG report reported 47% about R68.9 billion of funds spent of the R147.4 billion spent on government Covid-19 initiatives, the caucus says individuals who were put on precautionary suspension will need to explain themselves.

Condemning the actions of those who acted in their self-interests, without authority, the caucus will convene follow up meetings with executives to assess progress made on the management of Covid-19 resources.

The caucus calls on committees to strengthen their oversight and bring to each house a report recommending actions where prima facie evidence of corruption existed.

“Remedial action must follow and certificates of debt against individuals implicated must also be issued.”

Encouraged by the establishment of multi-party agencies such as the National Prosecuting Authority, Special Investigating Unit, and the Financial Intelligence Centre to accelerate work to ensure wrongdoers found wanting face the full might of the law, Majodina says the caucus called for corrupt individuals in government to be charged using the necessary legal prescripts from the National Treasury including the Public Finance Management Act.

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