Ministers at war as damning report on embattled MDDA gathers dust

A damning report detailing alleged gross mismanagement and abuse of power at the embattled Media Development and Diversity Agency (MDDA) has gathered dust for nearly a year‚ despite staff’s cries for help.

The failure to act over the report has now pitted former Communications Minister‚ Faith Muthambi‚ against her replacement‚ Ayanda Dlodlo.

The 12-page report was commissioned by Muthambi in November 2015. It took a year to complete according to an official response from her office.

Media mogul and former MDDA board member Mzwanele Manyi headed the team tasked to probe “governance matters” at the agency. He handed the report to Muthambi’s office in November 2016.

The report recommends disciplinary action be taken against MDDA board chairperson Phelisa Nkomo.

None has been taken.

Nkomo was found to have not signed off on board minutes‚ submitting extravagant claims for board fees and “other expenses” and holding an excessive number of board meetings without the Minister’s permission.

Nkomo failed to respond to questions from TimesLIVE.

Manyi’s report zeroes in on the conduct of Nkomo who was found to have claimed R235‚204 for board fees and expenses between January and December 2015.

The investigation team also found that R95‚000 was paid to a company Nkomo allegedly recommended to take minutes of board meetings.

Nkomo also allegedly tried to thwart the investigation by addressing correspondence to Muthambi on behalf of the board. The letter was verbally withdrawn by other board members when meeting Manyi’s team after it emerged they did not agree with the content.

According to MDDA regulations‚ the board is allowed four normal and eight special board meetings annually with board members paid R2‚200 per meeting‚ excluding travel expenses.

Manyi’s team could find no approval for the board to deviate from the prescribed number of board meetings‚ which saw Nkomo paid around R200‚000 irregularly.

Over and above finding that Nkomo had misrepresented the board in her attempts to stall the investigation‚ it was found that the minutes of board meetings were not signed by Nkomo‚ contravening the MDDA Act‚ and that R1-million in fruitless and wasteful expenditure had been incurred through the hiring and subsequent withdrawal of Dr Samuel Vilakazi as CEO.

Manyi’s investigation revealed that legal advice to conduct in depth reference checks on Vilakazi — a former CFO for the Telecommunications Department who was then under investigation for collusion on a multi-million rand communications tender — had not been heeded.

Vilakazi never reported for duty and the MDDA was forced to withdraw his appointment as CEO‚ and pay him a settlement.

Manyi’s report states that “the unsigned board minutes are not only in contravention of the law but also undermine the authenticity of the minutes and the validity of the decisions contained therein.

“It was noted that the chairperson of the board was operating as if she is the executive chairman. There is no positive correlation between the amount of time and expense attributable to the chairperson’s active involvement at MDDA.”

The report ends stating that the findings provide “prima facie evidence that may amount to misconduct and [Nkomo’s] failure to properly fulfil her duties as chairperson of the board”.

Muthambi has denied keeping the report under wraps‚ saying it was among the paperwork handed over to new Communications Minister Ayanda Dlodlo and her deputy Tandi Mahambehlala in April after the cabinet reshuffle.

Muthambi’s spokesman‚ Pfarelo Maduguma‚ said she [Muthambi] had called an urgent board meeting to discuss the report in December 2016‚ which Nkomo did not attend.

In an emailed response to Muthambi’s chief of staff‚ dated 7 December 2016‚ Nkomo says “due to an urgent matter I need to attend assigned by higher office I am not in a position to attend the meeting this morning [sic]”. There is no indication as to what the higher office she was referring to was.

Maduguma said the report was sent to Nkomo for her to respond to the allegations.

He said Nkomo never responded and the report was handed over to Dlodlo in April to follow up on and to implement the recommendations.

“[Nkomo’s] continued bunking of meetings with the Minister and the manner in which she resisted the commissioning of the investigation and her misrepresenting the board shows the kind of person she is.”

Maduguma said a copy of the report was also given to the deputy minister‚ Tandi Mahambehlala.

Dlodlo and Mahambehlala have reportedly been at each other’s throats over the MDDA issue‚ with the matter further complicated by Friday’s firing of the agency’s seventh acting CEO in three years‚ Donald Liphoko.

TimesLIVE understands the battle between Mahambehlala and Dlodlo is reaching boiling point‚ and the minister firing Liphoko without informing her deputy‚ who oversees the agency‚ is seen as another slight to Mahambehlala.

In August Liphoko spoke out against the Agency’s board during a visit by the parliamentary portfolio committee on communications.