BDFM Online
Monday, November 20, 2006
Johannesburg Metro Editor
GAUTENG public service commissioner Ralph Mgijima has been asked to investigate the hiring and promotion of staff at the Gauteng Shared Services Centre after complaints about its performance.
The unit, set up in 2001 to improve service delivery and take over procurement and payments for other departments to avert fraud, has been mired in controversy and allegations of mismanagement for most of its existence. There have been mounting calls from various quarters for it to be disbanded.
But Gauteng finance MEC Paul Mashatile continues to support the centre, which falls under his department. He admits it has faced "challenges", but says a review of the centre's strategy will ensure "it's a high-performance organisation by 2010".
Democratic Alliance finance spokeswoman Hermene Koorts said yesterday the commissioner indicated he would "look favourably on the request" for an investigation.
Complaints about the department and answers to questions posed in the legislature about qualifications of senior staff were of concern, she said. "The head of the Gauteng Audit Services, Azwianewi Mulaudzi, was appointed despite falling far short of the advertised requirements for the job," she said.
"With widespread allegations about the hiring of unqualified people and unjustified promotions in return for favours, we have decided to ask for an investigation."
Koorts said repeated requests to Mashatile for urgent intervention had fallen on deaf ears.
Mashatile said at the presentation of the centre's budget in July he believed the centre was being turned around and was best placed to ensure the province's goal of 70% procurement through black economic empowerment enterprises.
"Notwithstanding the challenges that continue to beset us, we are confident that we are now firmly on course towards not only meeting but also going beyond our customers' expectations," he said.
Despite his confidence, and the centre's unqualified report from the auditor-general for 2005-06, fraud of more than R7m a month was uncovered in July, allegedly masterminded by staff. Officials drew pay for more than 150 retired teachers, nurses and social workers, apparently for years.
The centre denied last month its audit unit altered a report exposing at least R40m in tender fraud in the housing department to protect senior officials and businessmen.
A former senior official at the centre leaked the original report to the media. It said former housing chief director Eugene Perumal signed three contracts with IT firm Enterprise Connection for services that ended up costing three times what was approved. The official report allegedly left out the name of the company and the amount owed.
It was revealed last month that the centre suspended 25 staff in just more than a year for irregularities in purchases for other departments and fraud. Nine employees were dismissed since last June.
The department was recently criticised for the late payment of bus operators ferrying school children in Gauteng, which led to a prolonged strike and a public outcry.
Earlier this year, hospital administrators complained about slow payments to service providers. One said his hospital had no light bulbs as their provider had not been paid.