The DA calls on Public Works, Roads and Infrastructure, MEC Ernest Rachoene, to address systemic challenges like maladministration, poor contract management, inadequate oversight by the Roads Agency Limpopo (RAL) board and irregular expenditure, highlighted in the 2023 BDO advisory services and the 2024 SAMBA solutions investigation reports recently presented during a SCOPA portfolio committee in the Limpopo Legislature.
The BDO investigation report into alleged fraud, corruption and procurement irregularities at RAL deals with allegations of irregular appointments, tender bids awarded irregularly, failures to comply with SCM policy, Bid Evaluation Committee (BEC) and Bid Adjudication Committee (BAC) irregularities.
The SAMBA solutions investigation report investigates the large amounts of irregular expenditure at RAL and its irregular expenditure register at the time amounted to R1.78 billion. The main contributors were R856 million for expired Service Level Agreements, R792 million for lack of clearly defined quality criteria, R106.7 million for deviations not justified and R29.2 million for three quotations not being obtained.
The report raised historical issues in the entity and also shows the main reasons for irregular expenditure in RAL were as a result of Supply Chain Management (SCM) documents not available, SCM processes not followed, payments made with expired Service Level Agreements and projects that were not budgeted for.
It is concerning that officials implicated in the BDO report are still employed at the entity and the current RAL CEO is allegedly implicated in the report numerous times and was previously issued with warning letters and final warning letter for conduct relating to irregularities in BEC processes.
The report also revealed serious issues such as alleged interference by the CEO at the time by stopping the evaluation of certain projects after the BEC was already appointed and reconstituting the BEC. The former CEO seemingly instructed officials to obtain proposals from specific contractors and handed an official handwritten notes in which he indicated which contractors should be approached.
The issues outlined in the BDO report show the failure of the previous board of directors as the accounting authority to ensure effective financial management, internal controls and effective risk management. MEC Rachoene must ensure the historical and systemic challenges that are a recurring feature in RAL are urgently addressed.
The people of Limpopo deserve the effective management of RAL and the potential it holds to facilitate development and economic opportunity. Immediate action is needed to address these issues and ensure they do not reoccur.