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DA calls for forensic probe as KZN DoAC pays massively inflated library generator prices


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DA calls for forensic probe as KZN DoAC pays massively inflated library generator prices

24th October 2022

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The DA will call on law enforcement agencies to conduct a full probe following the discovery that KZN’s Department of Arts and Culture (DoAC) spent R8.5million on 27 generators for libraries across the province, allegedly at vastly inflated prices. The expenditure relates to the previous financial year.

The DA is deeply concerned by this finding which comes after records, including invoices, were provided to us by a reliable source.

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According to the documents, prices stipulated on invoices issued to the DoAC - by nine different companies – are up to five times higher than the current market value. One such example is a 20kVA 230v diesel operated generator, which retails on average for R80 000 per unit. Yet the invoice prices average at R320 000.

Another discovery is that the companies are not VAT registered and did not charge VAT on their invoices. Coincidentally, the invoices are all signed on the same date, just before the end of the previous financial year.

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Of significant concern is that none of the discrepancies were picked up by the Auditor General (AG).

The DoAC has once again shown that it is incapable of managing public funds. This is not the first time that the DA has discovered such blatant wasteful expenditure.

The DA expects answers from MEC Amanda Bani-Mapena and has today submitted a written parliamentary question (view here). We also expect a full scale independent forensic investigation. An internal probe will not cut it as the objectivity of internal controls is questionable.

We also want answers around the nine companies paid by her Department and how they were selected as suppliers. It is clear that regulated supply chain processes were not followed for the payments of these units and that no market research into pricing was conducted by the DoAC. The splitting of orders is also classified as irregular expenditure and the DA will request that these transactions are probed by law enforcement agencies.

KZN’s Library Grant has become a personal ATM for the vultures within the DoAC. Those officials responsible for these transactions must be held to account including the former Chief Director of Administration - who doubles up as the Manager of the Grant - the Infrastructure Director and the Library Services Director.

The DA will continue to expose the rot within this Department, which has been mercilessly stealing from KZN’s people.

 

Issued by Bradley Singh, MPL - DA KZN Spokesperson on Arts and Culture 

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