On 6 May 2010 the local media BusinessDay reported, that the investigation will focus on the SABC's commercial enterprises division and the content enterprises division, where irregularities were identified. Finance systems, and human resources policies and systems will also be investigated.
The SABC's interim board launched an internal probe almost immediately in response to auditor-general Terence Nombembe's findings, released in September 2009, which showed irregularities, wasteful expenditure and fraud totaling hundreds of millions of rands from September 2007 to June 2009.
That probe is still under way and has led to a number of staff being suspended, including group executive for commercial enterprises Gab Mampone, on allegations of misconduct. Mampone was acting group CEO until the appointment of Solly Mokoetle.
Nombembe told Parliament when he submitted the report in September that his team had been unable to complete its investigations of all matters raised by Parliament, and recommended further investigation. Ironically, one matter still to be investigated is R1,4 million spent on food, beverages and renting tables and chairs for financial planning meetings.
The problem was that the SABC could not pay for a further investigation, as called for by the parliamentary committee on communications, a fact SABC deputy chairman Felleng Sekha made clear to Parliament in February 2010.
The appointment of the SIU means criminal action can be taken against offenders.
SABC chairman Ben Ngubane says the probe will involve "a review of the SABC's policies, procedures and systems and will seek to establish compliance with the Public Finance Management Act".
The extent of the lack of leadership and monitoring by management and the fraud exposed in Nombembe's report came as a shock to the public and the government, despite the SABC's financial situation being public knowledge.
More worrying was the finding that despite trade unions and SABC directors bringing detailed concerns to the attention of the acting group CEO, the chief financial officer and the former SABC board in September 2008, "no evidence could be provided that corrective actions were implemented by the SABC board or management".
Some of the findings in the report included the questioning of the procedure behind the payment of R279 million in consultant fees over the two-year period, the conclusion of seven contracts worth R174 million without proper authorization, and R112 million spent irregularly on acquisition of international content.
An internal inquiry by a law firm between 2007 and 2009 found R111 million in double payments, overpayments, materials paid for but not received, and agreements that had to be renegotiated.
The auditor-general also found board members had benefited from their membership of companies doing business with SABC.
Two companies of which two SABC board members were directors or members were paid R17 million, and one non-executive board member had an interest in a company paid R3,1 million in the period under review. At least 20 employees were directors or members of companies or close corporations paid a total of R3,4 million by the SABC.
It was found that former CEO Dali Mpofu and former head of legal services Mafika Sihlali concluded a R326 million contract with consultants to set up a technology programme management office when they had no authority to do so.
Issues Nombembe still wishes to investigate include R11,3 million paid to travel agents, including R6 million for travel to the Beijing Olympics, despite a requirement that all arrangements be made via the SABC's travel office. Other issues include R1 million to defend high court cases and payments to two firms for African National Congress T-shirts.
The attorney-general also says no one has been held accountable, in particular the executive manager, for the SABC's loss of soccer, cricket and boxing rights.
Mokoetle says he hopes "the integrity of the SABC is restored, as we embark on a journey to turn around the organisation". //End//
Reagan Malumo
Programme Specialist: Media Freedom Monitoring and Research
Media Institute of Southern Africa (MISA) Regional Secretariat
21 Johann Albrecht St
Private Bag 13386
Windhoek
Namibia
Phone: +264 61 232 975
Fax: +264 61 248 016
Mobile: +264 81 311 2626
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