Ex-Cogta head could face fraud charges
MEC reveals forensic probe findings of alleged criminal irregularities under Khanyile’s watch
OUTGOING Eastern Cape social development head of department (HoD) Stanley Khanyile may face fraud charges for financial transgressions allegedly committed while HoD of cooperative governance and traditional affairs (Cogta).
This after a forensic probe by national Treasury recommended he be criminally charged for various irregularities, including the appointment of consultants in various municipalities without following due processes.
Khanyile was head of Cogta between 2010 and 2015 before moving to social development.
He resigned earlier this month as social development HoD, citing strained working relations between him and his political boss, MEC Nancy Sihlwayi. His last day in office is May 31.
Khanyile is also set to be charged for a R13-million transfer to Matatiele municipality ahead of the 2014 general elections. The funds cannot be accounted for.
This was revealed by Cogta MEC Fikile Xasa when he spoke exclusively to the Daily Dispatch at Bhisho State House yesterday.
Khanyile yesterday dismissed the allegations as a low blow to smear his integrity after he had resigned from the public service.
Xasa said the national Treasury report and Advocate Vusumzi Msiwa’s investigation report, which also implicated Khanyile in alleged wrongdoing, had been forwarded to Premier Phumulo Masualle as Khanyile’s employer, for implementation of the recommendations.
Both reports are yet to be released for public consumption.
He said the findings of the probe “which shows the provincial government has lost millions”, had been reported to law-enforcement agencies such as the Hawks and Asset Forfeiture Unit.
The national Treasury probe, Xasa said, had focused on the procurement process of “smart pens” by Cogta, the appointment of Umnotho Business Consulting at various municipalities, and R13-million transferred to Matatiele ahead of the 2014 general election.
“The KwaZulu-Natal-based Umnotho was appointed by Khanyile to conduct forensic investigations in municipalities with no requisite competency to do so.
“As a result the department lost some money, hence we will pursue both disciplinary and criminal charges against the alleged perpetrators,” he said.
Khanyile cannot be charged internally or face any disciplinary hearing as he had already resigned as a provincial government employee.
“However, as long as he is still in South Africa, he will not escape facing criminal charges where there is a need,” Xasa said.
He said various municipalities “have lost millions due to their irregular appointment of Umnotho at the behest of Khanyile while he was accounting officer at Cogta”.
The R13-million transferred to Matatiele, Xasa said, was meant to assist the Independent Electoral Commission with issues such as improving access roads ahead of the 2014 general election.
“That money was transferred to the municipality, but was later handed over to a certain service provider which now cannot account for how it was used.
“We understand that such a service provider was irregularly sent by the department to manage such funds, but we have written to Matatiele mayor [Momelezi Mbedla] telling him of further investigations to ascertain the role of their municipal manager [Dr Tsepang Nakin] in the appointment of this external service provider,” the MEC said.
Xasa said no one was able to account for how the funds were used “hence that matter has now been referred to law-enforcement agencies because as the province we have lost a lot of money there”.
Xasa said “no fraud and corruption” was found in the procurement of the smart pens.
“Instead, the report highlights fruitless and wasteful expenditure as such pens were procured without putting in place the necessary software for its operations, while no training was done for end-users.”
Khanyile said he was not aware of such transgressions or the probe which had allegedly implicated him.
“It is strange that this is raised after I had tendered my resignation.
“This is stooping so low and attacking my integrity. This is a very unfair smear campaign as they now want to create a cloud to tarnish my image to potential employers.” —