The National Education, Health and Allied Workers’ Union [NEHAWU] welcomes the raid that took place this morning by the Directorate of Special Crime Investigations [HAWKS] at the Northern Cape Provincial Legislature as part of an investigation of the case opened by the union in Kimberley on the 6th October 2017.
The case was opened against the Deputy Speaker of the legislature, the Chief Financial Officer, the then acting manager responsible for human capital, the Head of Staff in the office of the speaker and the Secretary to the legislature who are all implicated in corruption and wasteful expenditure.
These cases are in relation to the non-pensionable allowance paid to the Secretary of about R367 788.18 and a further R13 870.24 paid on a monthly basis. So far the Secretary has fraudulently benefitted to an amount exceeding R600 000. The payment of this non-pensionable allowance is an intentional act by one or more individuals amongst management and those tasked with governance who are involved in the use of deception in order to obtain an unjust and illegal advantage.
The Chief Financial Officer resigned from a permanent position [Finance Manager] to take up his current permanent position of CFO. What is more suspicious is that this resignation was done after he received an offer for the new position. The intention of this fake and unlawful resignation was to receive his leave pay-out and in the process defrauding the Legislature. The CFO received an amount of R116 301.78 against the leave policy that states that leave pay-outs are only made upon termination of employment. He further mislead SALA pension fund by presenting himself as a person who has terminated his service with the Legislature and he did all of this against the clear provision of the SALA pension fund rules that says he can only receive a pension pay-out upon termination of employment.
In 2016 the CFO again demanded to be paid an amount of R92 106.26 stating that his leave pay-outs were not paid accordingly at the time of his unlawful resignation. He demanded to be paid 26 days which he took from 2009 to 2012 as vacation leave. In essence the CFO was paid for these days because he utilised them as vacation leave. This then means that during his resignation he demanded to be paid for days that he had already utilised and was paid for. In total, the CFO defrauded the Legislature an amount of R300.514.30 this amount excludes the pension pay out that he received through fraudulent means.
On the 23rd of February 2018, NEHAWU through its legal representative wrote a letter to the Speaker demanding a response to the allegations made by the union. The Speaker is required to respond on or before Tuesday, 6th March 2018 failing to do so will result in NEHAWU approaching the Northern Cape High Court for appropriate relief. The Speaker in his response to our correspondence on the 26th February 2018 said he has referred the matter to the Secretary and CFO for further response and processing. NEHAWU is still perplexed by the conduct of a person of the calibre of the Speaker who is the Executive Authority of an institution which is the creator of statutes failed to exercise his responsibilities by taking reasonable steps, in that he would rather refer the matter to the same people that the allegations are made against.
We further appeal to the HAWKS to also speed up the credit card fraud case that is as a result of travellink travelling agency amounting close to R2 million. These are amounts related to foreign trips of people not known to the Legislature and also accommodation paid by the Legislature without any form of approval. Furthermore, some of the payments are without any invoices so as to see for who the payments were made for. This case was also reported by NEHAWU to the HAWKS in November 2017.
As NEHAWU, we are more than committed to see this matter through and will not rest until those who have stolen from the Legislature are behind bars where they belong.
Issued by NEHAWU Secretariat
Zola Saphetha (General Secretary) at 082 558 5968;
December Mavuso (Deputy General Secretary) at 082 558 5969;
Khaya Xaba (NEHAWU Media Liaison Officer) at 082 455 2500
or email: firstname.lastname@example.org Visit NEHAWU website: www.nehawu.org.za