Flak over Nkandla despite ‘turning corner’

NOT even an account of success in turning around the Department of Public Works could save its minister, Thulas Nxesi, from a barrage of criticism from opposition parties over his department’s role in Nkandla.

The department and the security cluster of ministers were at the heart of the R246m upgrade to President Jacob Zuma’s private property, which Public Protector Thuli Madonsela found had improperly benefited the president.

Within the department itself, two key issues identified as problematic in audit reports were the leasing of properties and the management of an immovable asset register.

However, during the budget vote speech on Wednesday Mr Nxesi indicated that he believed the department had turned the corner on these issues.

"With National Treasury we have conducted an audit of the 2,162 properties leased-in from the private sector, and introduced more robust systems to manage the leasing portfolio," the minister said.

The department had overhauled supply chain management processes in the leasing environment and negotiated, with the Treasury, a special dispensation to fast-track the resigning of expired leases.

As a result of the audit the department had been able to renegotiate leases downward in 50% of cases, Mr Nxesi said.

The Treasury had also placed a cap on the escalation of leases of 5%, creating further savings. Most businesses had accepted these terms.

"The audit also highlighted leases where fraud and collusion is suspected. Findings included that the Department of Public Works has been paying rental to the tune of R5m a month for 108 properties that were vacant or unoccupied.

"The escalation rates of certain leased accommodation differed (from) market escalation rates and there were 578 leases where no lease agreements could be located, leading to potential irregular expenditure."

Payments for vacant properties had been stopped and other matters had been referred to the Special Investigating Unit for investigation.

The department was intent on prosecuting those implicated in corruption and would work to recover monies fraudulently paid out.

The opposition charge was led by Democratic Alliance MP Kenneth Mubu, who reminded the minister that the nickname for his department was the department of jokes.

Mr Mubu accused Mr Nxesi of misleading the nation over Nkandla and using excuses in seeking to categorise the upgrades there as merely security measures.

Economic Freedom Fighters MP Nokulunga Sonti also went on the attack, saying the expanded public works programme should provide permanent jobs with a basic salary of more than R4,000 a month.

- BDLive