Explosive probe reveals R23-million in dodgy tenders in KZN premier's office

An explosive forensic investigation into tender fraud in the office of KwaZulu-Natal Premier Willies Mchunu has revealed how a personal assistant and an administrative clerk dished out tenders worth almost R23-million to five companies with the knowledge of their superiors.

The report‚ dated March 18‚ 2017 and which has been submitted to Mchunu‚ shows that between 2012 and 2016 the personal assistant and the clerk processed most of the transactions where suppliers were awarded tenders. They did so with the knowledge of the chief financial officer in the office of the premier.

This largely happened under the watch of former premier Senzo Mchunu‚ who was KZN's first citizen between 2013 and 2016 - but the report doesn't indicate whether he‚ or any prior or future premier‚ was at fault.

The investigation conducted by the internal audit unit found that one catering company was awarded 59 orders worth R7.9-million between 2013 and 2016. It also found that two companies were awarded contracts worth more than R16-million as a result of cover quoting. The personal assistant also awarded a tender worth R517‚050 to a company owned by her uncle who lived with her. She nominated‚ invited and evaluated quotations of the company without disclosing the relationship.

The report is highly critical of the chief financial officer’s role in the irregular transactions which‚ it says‚ makes him liable to be charged with financial misconduct.

It has recommended that the accounting officer in current premier Willies Mchunu’s office report a case of fraud and corruption with the police for further investigation and criminal prosecution. It has also recommended that the accounting officer place those implicated on suspension during the criminal investigation and that a process to recover funds lost due to corruption be initiated.

The investigation emanated from an anonymous letter requesting a full investigation into the conduct of the supply chain management and asset management leadership in the premier’s office.

The whistleblower said there was no segregation of duties and the personal assistant to the supply chain manager was doing all the work supposed to be done by the supply chain practitioners.

“The non-implementation of segregation of duties is not as a result of the SCM unit being short staffed‚ but rather a deliberate manipulation of SCM processes with the intention of committing fraud‚” wrote the whistleblower.

The whistleblower also complained about non-rotation of service providers‚ saying a single supplier was used in all of the last financial year’s events; repetitive use of one service provider and a high-level of cover quoting.

The investigation found that the personal assistant and an administrative clerk consistently disregarded the segregation of duties required in the procurement of goods in that they carried out the nomination‚ invitation and evaluation of quotations of transactions under review.

Mchunu’s spokesman Ndabezinhle Sibiya said an official statement would be released soon as this was an urgent matter.