Judge Rashied Mathews throws the book at former HOD for misappropriation of Public Funds

The conviction of Mpho Mokoena, former Head of Department at Free State Department of Human Settlement should come as a very strong message to public servants who allow PFMA to be flouted deliberately to satisfy political heads.

Mokoena was convicted on 25 November 2021 and sentenced to a 15 years imprisonment wholly suspended by Free State High Court for his role as the accounting officer in the prepayment of R500 million against instructions from National Treasury.

Magistrate Rashied Mathews sentenced Mokoena after he pleaded guilty to offences that took place in the 2010/2011 financial year.

In his plea, Mokoena stated the department advertised a tender in 2010 to build RDP houses for the community. The tender was, however, cancelled.

The national Department of Human Settlements had allocated close to R1.4 billion to the provincial department for construction of low-cost housing in the Free State.

The department was expected to utilise the allocated funds in the same financial year for purposes they were allocated. The funds were to be withdrawn by the National Treasury if they were not used.

The department failed to utilise the allocated budget for the 2010/2011 financial year and presented an expenditure recovery plan on how to use the allocated funds which was not in accordance with the business plan of the Free State Department of Human Settlements.

The minister and members of the Executive Council warned the department that their expenditure recovery plan was not accepted and the department was not permitted to use the balance of the allocated budget for the recovery plan, but the department went ahead and authorised the advance payment of at least R500 million worth of building equipment and material for projects that still had to commence.

Last year Mokoena had told the acting Chief Justice Zondo that his former MEC Mosebenzi Zwane gave Mmusi Tsoametsi instructions to go ahead with a housing project despite an instruction from National Treasury not go ahead with advance payment scheme.

According to Mokoena the meeting was attended by the entire EXCO together with HODs and CFOs when the National Treasury sent a representative to communicate that advance payment scheme is illegal.

When asked by Commission’s lead prosecutor, Adv Pretorious if former MEC Zwane told him anything about the contractor, Rochelle Els.

Mokoena said Mosebenzi Zwane personally issued instructions for Rochelle Els to get contracts to build houses in Kroonstad.

He also said that suspended Secretary General of African National Congress(ANC), Ace Magashule, who was premier at the time wanted Els’s claims and payments to be expedited.

Mokoena gave details to the state capture commission on contractors who secured lucrative deals from the R1 billion housing project.

Other witnesses have testified that more than R500 million was paid before any work was actually done.

State capture chairperson Acting Chief Justice Raymond Zondo asked for clarity on Mokoena’s claims.

“Would that be Mr Zwane coming to you when claims had been lodged and say: ‘You must expedite Ms Rochelle Els’ claims because the premier has said they must be expedited?'”

“That’s correct yes,” Mokoena said.

ZWANE OVERSTEPPED MY AUTHORITY

Mokoena also said that Zwane had overstepped his authority as MEC and interfered in procurement procedure and management of staff.
He said that he advised Zwane that the prepayment of suppliers who provided building materials was illegal even before National Treasury flagged that the transaction had flaws.

“Supply chain management, procurement is by the HOD. When you talk management of staff, you talk the HOD. So, he was into all those and to me it came as though he was doing it deliberately and I think he was being advised by someone.”

Mokoena said that he was ignored, with Zwane insisting that other provinces were doing the same thing.

Mokoena mentioned that he went to Magashule’s office seeking his intervention and threw in the towel after going to the Premier’s office for three weeks without any intervention.

In his testimony at the commission former Chief Director, Kaizer Maxatshwa told acting Chief Justice Zondo, that they were purged and one of them lost their life due to depression while him and other struggle to get employment.

A leaked forensic report dated September 2015 show details of 6 employees who were dismissed after disciplinary hearing while others resigned before hand.

One of the victims of the alleged purge spoke on condition of anonymity pleaded with premier to reinstate them.

“The conviction and confession of former HoD Mokoena comes a bit late unfortunately, when we wanted him to exonerate us and take ownership as the accounting officer; he threw us under the bus. We however, feel vindicated that soberness finally visited his thoughts and he finally spoke the truth. It is now up to the Premier Sefora Ntombela and MEC Koloi to do what is right and compensate and reinstate us. They owe us that much.”

In another unrelated court case a former supply chain director at Free State Education is facing corruption charges in Bloemfointein High court having lost his job at Free State DoE.

In the Gauteng Education PPE saga, public servants are on the receiving end as they are charged.

“Following the referral by the SIU and the analysis of the evidence, it has been recommended that the Head of Supply Chain, Chief Director for Infrastructure Development and Acting Director for Auxiliary Services be charged in accordance to the findings in the investigation report,” Mabona said.

Meanwhile in the Eastern Cape, four former senior officials from the Eastern Cape Department of Education and a company director have been arrested on fraud and corruption charges relating to a R59 million fraud that was meant for purchasing textbooks for pupils in the province earlier this year.

In Kwazulu Natal the Hawks arrested a senior official in the Office of Premier Sihle Zikalala for fraud and corruption linked to a R20 million catering tender.
Three service providers have also been arrested.
KZN Hawks spokesperson Simphiwe Mhlongo said that the four accused joined five others who were already arrested in July 2021.

“Amongst those four, there is a manager from the supply chain who is to appear in the Durban Specialised Commercial Crimes Court now.”

The most critical question is are these happening without political heads knowledge and at what point will public servants say no to interference and political instructions?

Former Gauteng Health Chief Director for Supply Chain and Asset Management, Thandiwe Pino shone light of the her role in the Gauteng Health PPE Scandal that involved Royal Baca, the company that was linked to Prince Diko the husband of former presidency spokesperson Khusela Diko in an interview with 702’s Clement Manyathela

Pino said she is refused to be a witness for the SIU.

Asked about lessons from this Pino told Manyathela we should not compromise on ethical leadership.

We have heard how politicians especially MECs give out instructions to Human Resources to appoint their friends and families in government positions without proper processes while they also give Supply Chain Managers instructions to apply certain companies and most do not give these instructions on email.

When all goes south it’s the civil servants who are left dry to hang and who face the music.