Cape Times

Officials able to win government business

- BALDWIN NDABA baldwin.ndaba@inl.co.za

A GAUTENG government official is to face the music for allegedly failing to disclose that he earned more than R50 000 in his private dealings with the government four years ago.

Gauteng sports, arts, culture and recreation MEC Mbali Hlophe made these revelation­s in a written reply to questions by the DA’s spokespers­on on sports, arts and culture, Lebogang More.

However, the official is likely to be the only target as Hlophe has admitted that her department does not have the tools to prevent its officials from doing business with the provincial government or any other entity under it.

She made the admission when More asked her whether there were any officials who have done business with the department or the Gauteng Film Commission (GFC) in the past five financial years, including in 2019.

In her reply, Hlophe said: “The Gauteng Film Commission has no known knowledge of officials who have done business with GFC in the past five financial years and there is no system to track whether officials who have done business with the department or GFC in the past five years.”

Hlophe said that her department did have officials who were doing business with her department. She singled out a contract worker who apparently earns a stipend of R4 000.

The contract worker – who has an employee number – was one of the two people singled out by the Auditor-General for doing business with the government.

According to the AG, the contract worker was paid an amount of R116 000 for providing training and consultanc­y work to the same department during the 2018/19 financial year.

Hlophe admitted that the second person – whose name is withheld – was a permanent employee of the department.

He did business with the same department in 2017 and was paid an amount of R50 000.

“The Department of Sport, Arts, Culture and Recreation is yet to institute disciplina­ry action against him.”

Hlophe also admitted that some of the relatives of officials in her department and the GFC have been doing business with her department and the GFC. Hlophe said some of these relatives received funding for the past five financial years.

“Yes, both the Department of Sports, Arts, Culture and Recreation and the Gauteng Film Commission have relatives of officials who have done business with SACR and GFC. In the Department of Sports, Arts, Culture and Recreation – Enelani Business Solutions was paid R279 829.00.

“Sugar Lemon Entertainm­ent/ Catering Services was paid R31 150 by the Gauteng Film Commission,” she said.

Hlophe, however, said the GFC was only able to identify the transactio­n with state officials/relatives based on its declaratio­n of informatio­n, saying, “Thus, Sugar Lemon is the only company that was identified.”

Hlophe added: “Due to limited resources and capacity, the finance unit is unable to identify any other transactio­n entered into with relatives of GFC officials.”

SAA has issued notice to employees that it intends to begin consultati­ons on retrenchme­nts, the business rescue practition­ers (BRPs) for the troubled national carrier said yesterday.

“The joint BRPs today announced that SAA has issued a notice advising its employees of the intention to begin imminent consultati­ons in terms of section 189 of the Labour Relations Act 66 of 1995,” a spokespers­on for the BRPs said.

They stressed that retrenchme­nts, along with route and fleet reductions, were essential to avoid liquidatio­n.

In light of this, the BRPs proposed a shorter consultati­on process.

The notices went out to all trade unions representi­ng staff and management, following talks over the weekend and earlier with labour sector representa­tives.

A reduction in route flow, as well as in the national airline’s fleet, was unavoidabl­e. Apart from cutting staff, salaries could also be reduced, said the BRPs.

“The BRPs contemplat­e that all 4 708 employees will be affected and the number of jobs that will exist in the restructur­ed organisati­on will be the subject of the consultati­on process.

“Significan­t changes to conditions of employment, including remunerati­on and benefits, appear unavoidabl­e and will be sought by agreement.”

The BRPs added that they would seek to preserve as many jobs as possible, but cautioned that the outlook for SAA had dimmed further following the spread of the coronaviru­s and its impact on internatio­nal travel.

SAA has stacked up losses of R26 billion over the past six years and was placed in voluntary business rescue in December.

“Load factors on the airline have declined steadily from August 2019 to a low of 71% in January 2020.

“Forward sales have also declined significan­tly, with all markets showing negative or minimal growth, within a very competitiv­e market.

“The recent marked decline in travel due to Covid-19 will further exacerbate matters.

“The changes required at SAA are therefore both structural and economic.

“They are urgent if liquidatio­n is to ultimately be avoided, in which event all employees will lose their jobs.”

The business rescue team, which is due to submit a report to the government at the end of this month, said they were proposing a fundamenta­l restructur­ing to enable SAA to function as a sustainabl­e African airline, and the current structure did not allow for this.

The restructur­ing process at this stage does not affect staff at SAA’s subsidiari­es Mango, SAA Technical and Airchefs. Initial consultati­ons with staff and representa­tives will be held on Thursday.

The legally prescribed 60-day consultati­on process will end on May 8. However, the business rescue practition­ers said an expedited month-long consultati­on process ending April 8 had been proposed in an effort to avoid SAA’s liquidatio­n.

“It is essential that this process achieve an agreement between the company and the unions that will be communicat­ed to the creditors and the lenders as part of the business rescue plan, if the business rescue plan is to be approved and liquidatio­n avoided.

“The business rescue practition­ers believe that if this is achieved, SAA will be sustainabl­e and the future of SAA can be ensured, without further fiscal assistance,” the practition­ers said.

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