R15m for lawyers - dept still overspends

2011-03-08 23:16

Johannesburg - An agency of the Gauteng education department has overspent a R15m budget to hire a law firm by R594 000, spokesperson Charles Phahlane said on Tuesday.

The department was taking legal advice on whether it could recover the over-expenditure from the former CEO of the Gauteng City Region Academy (GCRA), Saagrin Ramsammy.

Education MEC Barbara Creecy ordered a forensic audit after Ramsammy complained to senior leaders of the Gauteng provincial government, alleging irregular procurement processes at the academy in November last year.

The audit by Grant Thornton made it clear that the procurement of a law firm for the GCRA was done according to procedure, "in a fair, equitable and transparent manner".

The report however highlights overspending of R594 000 on the contract, for which Ramsammy gave permission when he was CEO of the academy. The report recommends further investigation into Ramsammy's roles and responsibilities regarding the overspending.

The academy is now under the control of the premier's office.

According to its website it aims to provide training in areas such as project management, finance and engineering, which are essential to the public service.

- SAPA

Read more on:    barbara creecy
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