Investigations into the R2.3 million EPWP stipents reveal Free State Social Development officials gave unofficial list to Khula Foundation, have been concluded.
According to the minutes of the Audit Committee which sat on the 3 December 2020, Khula Foundation CEO refused to account nor take the blame for the R2.3 million. She indicated they
received instructions from officials of the Department to make payments of stipends to people who were not part of the list that they had.
This, according sources raised a serious concern and the Internal Audit Unit was asked to further investigate this claim by Khula Foundation that officials of the department gave them instructions to pay stipends.
Step Up SA News can confirm Internal Audit Unit found officials have indeed given Khula Foundation instructions to make payments of stipends to people who were not part of the list to the amount of R2.3 million.
A source with intimate knowledge said this has nothing but, fraud written all over it.
“This is fraud plain and simple, they must be criminally charged.”
Another source said this implicated senior officials.
“People who were tasked to submit these lists are not junior officials but seniors. They tried to squash this under the carpet otherwise how do you explain the unnecessary delay of over 12 months?”
Social Development acting HOD, Adv Tumelo Phahlo confirmed the officials will go through disciplinary hearings.
“The department has instituted disciplinary action against officials involved, the matter is still in progress.”
Asked if the department would institute legal action against Khula Foundation Phahlo said.
“The department has explored options to exercise legal avenues against Khula Foundation.”
Its not clear if officials implicated did benefit directly or indirectly and if they included names of their families and friends.
Last month this publication reported how Social Development pulled out of a pads manufacturing project that was helping the poor and disadvantaged citing covid while in June, we reported how the same department procured twenty (20) laptops for R500 000.
Khula Foundation could not be reached for a comment.
This is developing story.
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