“Certificate of Debt is Untransferable” – Auditor-General

Staff Reporter

Bloemfontein – Auditor-General of South Africa, Tsakani Maluleke, has confirmed the withdrawal of a certificate of debt linked to approximately R16 million arising from material irregularities identified in the G-Hostel project.

Why and how did Maluleke come close to a R16 million mistake, if it was a mistake?

Maluleke confirmed that former Free State Department of Human Settlements Head of Department, Mosa Masemene, had been transferred before the deadline for implementing the Auditor-General’s remedial action and could therefore not be held personally liable.

“After careful consideration of the written and oral representation by the former accounting officer, as well as the recommendation of the ACMI, the AG resolved not to proceed with the issuance of a certificate of debt against the former accounting officer as she was removed from office prior to the due date for the implementation of the remedial action. A certificate of debt is issued in the name of a specific person and once issued it is not transferable to other persons,” said Maluleke.

The material irregularity relates to payments made to a contractor for standing time during the Covid-19 national lockdown period.

“The AGSA can further confirm that a notice of intention to issue a certificate of debt was subsequently issued against the former accounting officer as a consequence of failure to implement the binding remedial action prescribed,” Maluleke added.

However, questions remain unanswered.

According to the Auditor-General, the deadline for implementing the remedial action fell after Masemene had already been transferred from the department.

At that stage, Advocate Jacob Phahlo had assumed the role of accounting officer.

If Masemene was no longer in office when the remedial action became due, who then failed to implement the Auditor-General’s binding instruction?

Tsakane Maluleke makes U-turn and clears Masemene of R16 million liability

Or maybe the certificate was meant for a person not office.

The Auditor-General has made it clear that a certificate of debt cannot be transferred from one accounting officer to another. This raises a critical question: if the remedial action was not implemented, where does accountability now lie?

The matter has sparked renewed scrutiny over the handling of the G-Hostel project and the enforcement of consequences for public officials entrusted with safeguarding public funds.

Step Up SA News is seeking comment from Masemene and her legal representatives, Peyper Attorneys.

Questions will also be directed to the Auditor-General and the Office of the Premier as the publication continues to investigate the matter with allegations Mathae knew Masemene would be served way before official correspondence was sent.

If indeed Mathae knew then who told her and for what purpose?

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