Golden handshake for education CFO, R6.8m irregular expenditure charges dropped

Instead of holding him accountable for irregular expenditure of almost R7m of taxpayers’ money, former Eastern Cape education CFO Jason O’Hara received a golden handshake of R253,000.

A charge sheet, seen by the Daily Dispatch, shows O’Hara was slapped with four charges, including R6.9m irregular expenditure and misleading education superintendent-general Themba Kojana in relation to “approvals” of a contract with controversial company Sizwe Africa IT Group, a subsidiary of AYO Technology Solutions owned by controversial businessman Iqbal Survé.

However, instead of disciplining O’Hara, he was offered six months’ salary and all charges against him were dropped.

These revelations are contained in documents prepared by the department for the standing committee on public accounts (Scopa), which is expected to discuss the matter soon. The R6.9m irregular expenditure emanates from a payment O’Hara authorised to accounting firm Ernst & Young, allegedly without consulting Kojana.

The documents include a 10page charge sheet which offers a glimpse into O’Hara’s February 2020 golden handshake and subsequent resignation, details of which had not been made public — until now.

Speaking to the Dispatch on Tuesday, O’Hara said the Ernst & Young payment “was in respect of additional work required by the department and authorised and sanctioned by Kojana”.

“The master-level agreement pertaining to the Sizwe Africa contract was concluded and established by HOD Kojana long before I took up employment with the department.

“It seems opportunistic for the HOD to provide a scapegoat by implicating me now that I am no longer with the department.

“I have no knowledge of any charges against me,” he said.

He had been charged with:

● Contravening section 45(c) of the Public Finance Management Act by failing to prevent irregular expenditure in that he authorised a R6.9m payment for Ernst & Young in December 2018 without the necessary approval;

● Assuring Kojana that the required approvals would be/had been obtained for the Sizwe Africa 2019 contract when the accounting officer was requested to sign his approval, whereas such required approvals were not obtained;

● Failing to attend Scopa on November 26 and failing to support and assist Kojana in that meeting;

● Failing to consult with or clearly communicate with Kojana or the senior management leadership committee prior to the submission of the 2019 adjusted budget to provincial treasury and the auditor-general; and

● Failing to review and/or take responsibility for the erroneous 2019 six-monthly financial oversight report presented to the MEC and provincial treasury.

In the documents, the department did not offer further details on the Sizwe Africa contract.

Kojana could not be reached for comment but last week he defended this contract, saying the uproar over the tender was just “noise”.

The Dispatch has seen a settlement agreement, which says as a “consequence” of O’Hara having tendered his resignation, the department had dropped all charges.

The charge sheet was not discussed in Scopa last week as committee chair Veliswa Mvenya sent the department packing after it submitted it as part of its voluminous documents only a few hours before the meeting, which is against house rules.

Asked who would account for the irregular expenditure and other alleged misdeeds by O’Hara now that he had resigned, provincial education spokesperson Loyiso Pulumani stonewalled the question, referring the Dispatch to the February media statement which announced O’Hara’s resignation.

It seems opportunistic for the HOD to provide a scapegoat by implicating me now that I am no longer with the department