Buffalo City Metro has roped in forensic investigators KPMG to probe the dodgy spending of R17.3-million in sports events, some of which never took place, including a R250000 “egg-and-spoon” race tournament.
This was revealed in a confidential report, seen by the Saturday Dispatch, meant to have been tabled at a council meeting on Wednesday. The probe is meant to “follow the money” in the distribution of sponsorships towards 29 events by BCM’s sports sponsorship committee.
The investigation follows a Dispatch exposé in March where it was revealed how unapproved public funds were misused to pay organisations including cleaning, gardening and maintenance companies for sports events that never took place.
In the progress report meant for council – compiled by acting city manager Nceba Ncunyana – KPMG stated that they wanted to verify the “alleged payments to the venues as mentioned in the subject report”.
“In the first phase they (KPMG) will be analysing the procedures and processes contained therein and include any findings of non-compliance, irregularities and or procedural issues noted,” read the report.
The forensic investigators were supposed to have submitted their final report on Wednesday but asked for another extension, saying that the report will be ready in time for the next council meeting in August.
It is understood the spotlight will fall on the role of former BCM councillor Ayanda Peter, who chaired the committee at the time.
In March the Dispatch reported that Peter approved R250000 funding for an egg-and-spoon race tournament that never took place. The committee paid another R5-million towards other non-existent sporting events.
The funds in question form part of a R17.3-million sports sponsorship programme, which were allocated without council’s approval last year.
The Dispatch exposed at least six ghost tournaments where R2.1-million was paid.
While the big Buyel’ Ekhaya Music Festival did take place, the claims that the committee paid R3-million towards the event were refuted by BCM’s head of events and entertainment, councillor Pumla Nazo who told the Dispatch that the “allocation... did not go to the festival”.
Other non-existent tournaments found by the Dispatch included:
l A BCM sub-unions rugby tournament that was allocated R560000. The funding was allocated to Vuyolwethu Booi’s Ndesane Trading company.
l A schools hockey tournament allocated R250000 to take place in Mdantsane. The money was paid to a cleaning company Mbonana Garden Cleaning & Maintenance Services (Pty) Ltd and
l A soccer, rugby and netball tournament allocated R150000 and meant to benefit disadvantaged rural youth from Potsdam in December.
In the recent KPMG progress report it said investigators visited the business premises of the 29 organisations mentioned in the close-out report.
“A detailed planning document has been compiled for on-site visits to the venues to confirm whether the events did take place. Site visits were conducted at the respective venues in order to verify if each of the 29 sponsored events took place.
“They have conducted further due diligence searches on all 29 organisations to identify any conflict of interest between the directors of these organisations or potential conflicts with an associated entity,” the report stated.
KPMG has also conducted profile due diligence reports for three of the seven events in excess of R400000.
Venue managers of the said events were “reluctant to provide details or confirmation regarding the hosting of the events without proof of written authorisation from BCM”.
The company has now asked BCM to issue authorisation letters to be given to venue managers and officials from the municipality’s finance department in order for them to provide the required information. — mamelag@dispatch.co.za
Top firm to probe R17m sports spend
This was revealed in a confidential report, seen by the Saturday Dispatch, meant to have been tabled at a council meeting on Wednesday. The probe is meant to “follow the money” in the distribution of sponsorships towards 29 events by BCM’s sports sponsorship committee.
The investigation follows a Dispatch exposé in March where it was revealed how unapproved public funds were misused to pay organisations including cleaning, gardening and maintenance companies for sports events that never took place.
In the progress report meant for council – compiled by acting city manager Nceba Ncunyana – KPMG stated that they wanted to verify the “alleged payments to the venues as mentioned in the subject report”.
“In the first phase they (KPMG) will be analysing the procedures and processes contained therein and include any findings of non-compliance, irregularities and or procedural issues noted,” read the report.
The forensic investigators were supposed to have submitted their final report on Wednesday but asked for another extension, saying that the report will be ready in time for the next council meeting in August.
It is understood the spotlight will fall on the role of former BCM councillor Ayanda Peter, who chaired the committee at the time.
In March the Dispatch reported that Peter approved R250000 funding for an egg-and-spoon race tournament that never took place. The committee paid another R5-million towards other non-existent sporting events.
The funds in question form part of a R17.3-million sports sponsorship programme, which were allocated without council’s approval last year.
The Dispatch exposed at least six ghost tournaments where R2.1-million was paid.
While the big Buyel’ Ekhaya Music Festival did take place, the claims that the committee paid R3-million towards the event were refuted by BCM’s head of events and entertainment, councillor Pumla Nazo who told the Dispatch that the “allocation... did not go to the festival”.
Other non-existent tournaments found by the Dispatch included:
l A BCM sub-unions rugby tournament that was allocated R560000. The funding was allocated to Vuyolwethu Booi’s Ndesane Trading company.
l A schools hockey tournament allocated R250000 to take place in Mdantsane. The money was paid to a cleaning company Mbonana Garden Cleaning & Maintenance Services (Pty) Ltd and
l A soccer, rugby and netball tournament allocated R150000 and meant to benefit disadvantaged rural youth from Potsdam in December.
In the recent KPMG progress report it said investigators visited the business premises of the 29 organisations mentioned in the close-out report.
“A detailed planning document has been compiled for on-site visits to the venues to confirm whether the events did take place. Site visits were conducted at the respective venues in order to verify if each of the 29 sponsored events took place.
“They have conducted further due diligence searches on all 29 organisations to identify any conflict of interest between the directors of these organisations or potential conflicts with an associated entity,” the report stated.
KPMG has also conducted profile due diligence reports for three of the seven events in excess of R400000.
Venue managers of the said events were “reluctant to provide details or confirmation regarding the hosting of the events without proof of written authorisation from BCM”.
The company has now asked BCM to issue authorisation letters to be given to venue managers and officials from the municipality’s finance department in order for them to provide the required information. — mamelag@dispatch.co.za
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