Committee chair shocked at SABC ‘rot’

2009-09-22 13:22

A REPORT by the Auditor General has found hundreds of millions of

rands in fruitless, wasteful and irregular spending at the SABC.

Parliament’s communications portfolio committee chairperson Ismael

Vadi said on Tuesday he was shocked at the extent of the “rot” contained in the

report.

“From the briefing we received this morning, I think we have before

us a monumental failure of the executive management around financial controls

and management at the SABC,” he said.

“We had a gut feeling that the rot had set in but I must say that

this morning when we got the briefing I was shocked at the extent of the

rot.”

One of the findings in the 72 page report included irregularities

in the awarding of seven tenders valued at R174 million between September 2007

and June 2009.

“Evidence could not be found that a total of seven tenders awarded

for an aggregate amount of R174,069 million were approved according to the

appropriate levels stipulated in the Delegation of Authority Framework,” the

report said.

Another finding was that the former group chief executive had

entered into a material agreement for R326 million with a consultant in

September 2006, even though he did not have the authority to do so.

The report said that no corrective action had been taken to address

deficiencies in the acquisition of international programme content, despite the

advice that came from a forensic investigation in August 2007.

The investigation had reported irregularities of R111.746 million

relating to double payments, overpayments, material paid for but not received,

agreements that had to be renegotiated and programme titles acquired more than

once from the same supplier.

The report said R11.3 million had been paid out in September 2007

to June 2009 to a private travel company for travel arrangements.

This was in contravention of the SABC’s travel policy which

requires all such travel arrangements to be made via the SABC’s own travel

office.


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