Ultimatum for transport boss

Challenged over project payments

THE EKURHULENI transport head has been given seven days to explain why she should not be suspended following serious allegations of corruption in her department.

The resolution to suspend Lusanda Madikizela as head of the department was passed during a closed-door council meeting on Thursday. The alleged corruption case relates to irregular payments made to a contractor appointed to build two taxi ranks.

Although Madikizela refused to comment yesterday, in one case it was alleged the Vosloorus rank was meant to cost the metro R18 million over eight months.

However, four years later the incomplete structure has cost ratepayers R54m, documents seen by The Star showed.

This was after additional payments were made to the initial contractor who abandoned the project.

A replacement builder was appointed and paid R17m.

A further R12m was being requested by the transport department for the project’s completion.

“The contractor eventually abandoned the site as it had no motivation to complete the work as it was paid in advance. After abandoning the site, the department eventually terminated their contract,” according to the report.

The Bluegum View rank’s budget was R14m, and it was also to be completed in the same period, but it was still in the process of being built from late 2016.

“Work had not been completed but the contractor invoiced the metro the full amount of the contract. (Madikizela) certified work as having been completed and therefore paid the full amount. (An) invoice of R541 000 was signed in June 2017 as work completed when this was not the case,” the report said.

Damning allegations were made against Madikizela in the report. She was accused of turning a blind eye on spiralling expenditure even though she was alerted to the irregular spending as early as March last year.

Ekurhuleni metro city manager Imogen Mashazi, in the report, said the manner in which she handled the matter constituted misconduct.

“(She) should be dealt with in terms of the Municipal Regulations on Financial Misconduct Procedures and Criminal Procedures,” the report said.

Mashazi wanted Madikizela suspended, as her presence in office could “hamper investigations”.

The metro said the official who reported the alleged corruption was being sidelined by the department and was no longer invited to meetings of the projects.

“Madikizela was made aware of the duplication in the project as far back as March 2017 yet (she) did not inform the accounting officer (Mashazi) of the anomaly, nor did she refer the matter to internal audit for investigation,” the report stated.

Madikizela was also accused of not informing her boss or the metro’s internal audit department of adverse findings contained in an audit report on the projects, despite having received the document in August last year.

Ekurhuleni spokesperson Themba Gadebe confirmed she had been given a seven-day ultimatum. “A preliminary report was debated by council in committee last Thursday… council resolved that a full-on investigation must be carried out,” he said.

He said Madikizela’s presence in the department could jeopardise the investigation and be detrimental to the stability of the department.

Madikizela had not responded to requests for comment by the time of publication.