By ASANDA NINI and SIYA BOYA
Three projects, set up by the Eastern Cape department of social development at a cost of R10-million two years ago to manufacture diapers and sanitary towels, have not produced anything between them.
The three projects are QingqaMntwana in Keiskammahoek, Khulanathi in Butterworth and East London-based Thinta Mfazi.
A forensic investigation has been completed and a report handed to the department of social development.
Head of department Stanley Khanyile confirmed that “various officials” faced disciplinary processes for the failure of the projects.
He requested that further questions be e-mailed to his office but had not replied to them by the time of writing yesterday.
The R10-million was for the purchase of one diaper manufacturing machine and two sanitary towel manufacturing units for each project.
However, not a single diaper or sanitary towel has been produced by any of the three projects since the funds were paid in 2014.
Just one of three pieces of machinery bought to manufacture the products has been delivered to the Keiskammahoek project despite payments to a Cape Town-based company to supply the equipment.
According to the forensic report, compiled by Integrated Forensic Accounting Services (Ifas) and seen by the Saturday Dispatch, “the prospects of a satisfactory outcome for these three projects seems remote, unless firm and decisive remedial action is undertaken”.
At the Keiskammahoek project, close to R4-million was paid to a service provider to deliver machinery. Instead an old machine that was not working and now stands idle, was reportedly delivered.
An amount of just more than R500 000 has also disappeared from the project. The Ifas forensic report revealed that the money was more than likely stolen by people involved in the project.
During a Saturday Dispatch visit to Keiskammahoek yesterday, project members refused to speak about the matter and instead referred queries to the department of social development.
The report found the projects had been “compromised by a combination of poor procurement decisions, lack of planning, ineptitude in oversight, possible dishonesty, targeting by criminals, vandalism and other external factors”.
“As a result, several years after the funding was incurred, only one of three units has been imported, with limited prospects of the outstanding two arriving within the foreseeable future,” the report states.
The investigators added: “Regarding the R500 000 theft at Qingqa Mntana Disposable Products project, we are convinced that the offenders either are, or were closely involved, or associated with departmental officials closely involved in the oversight of these three projects”.
The case could be solved “if the investigative momentum is maintained and leads pursued”.
The investigators further recommended to the department of social development that any individual implicated “in neglect or dishonesty” in relation to the projects should be held accountable, consistent with the prescripts of the Public Finance Management Act.
Cecilia Makiwane Hospital CEO Dr Mtandeki Xamlashe said having diapers and sanitary towels manufactured in the Eastern Cape would not only improve delivery, but also benefit the provincial economy.
“The private sector in the province needs to wake up and create dialogue about this,” Xamlashe said.
“Having these products manufactured here would be beneficial for the provincial economy and it would create job opportunities.”
He said many of the suppliers were based in Gauteng and KwaZuluNatal and as a result some provincial hospitals experienced delivery delays.
“Can you imagine the catastrophe if they went under? At least if it were local companies, checking them would not be as difficult,” he added.
Xamlashe said at CMH they tried their best to ensure sufficient stock was on hand to ensure that they never ran out of the items “because they are essential. But sometimes they are not delivered on time and that is inconvenient”.
Health department spokesman Siyanda Manana said the department did not check on where their suppliers were based when awarding contracts.
“We deal with suppliers from the provincial database and we do not check where they are based. We look at various factors, including the cost implications, when choosing such companies,” Manana said. — asandan@dispatch.co.za / siyab@dispatch.co.za
WHAT A RIP OFF: Nothing produced from R10m projects
Three projects, set up by the Eastern Cape department of social development at a cost of R10-million two years ago to manufacture diapers and sanitary towels, have not produced anything between them.
The three projects are QingqaMntwana in Keiskammahoek, Khulanathi in Butterworth and East London-based Thinta Mfazi.
A forensic investigation has been completed and a report handed to the department of social development.
Head of department Stanley Khanyile confirmed that “various officials” faced disciplinary processes for the failure of the projects.
He requested that further questions be e-mailed to his office but had not replied to them by the time of writing yesterday.
The R10-million was for the purchase of one diaper manufacturing machine and two sanitary towel manufacturing units for each project.
However, not a single diaper or sanitary towel has been produced by any of the three projects since the funds were paid in 2014.
Just one of three pieces of machinery bought to manufacture the products has been delivered to the Keiskammahoek project despite payments to a Cape Town-based company to supply the equipment.
According to the forensic report, compiled by Integrated Forensic Accounting Services (Ifas) and seen by the Saturday Dispatch, “the prospects of a satisfactory outcome for these three projects seems remote, unless firm and decisive remedial action is undertaken”.
At the Keiskammahoek project, close to R4-million was paid to a service provider to deliver machinery. Instead an old machine that was not working and now stands idle, was reportedly delivered.
An amount of just more than R500 000 has also disappeared from the project. The Ifas forensic report revealed that the money was more than likely stolen by people involved in the project.
During a Saturday Dispatch visit to Keiskammahoek yesterday, project members refused to speak about the matter and instead referred queries to the department of social development.
The report found the projects had been “compromised by a combination of poor procurement decisions, lack of planning, ineptitude in oversight, possible dishonesty, targeting by criminals, vandalism and other external factors”.
“As a result, several years after the funding was incurred, only one of three units has been imported, with limited prospects of the outstanding two arriving within the foreseeable future,” the report states.
The investigators added: “Regarding the R500 000 theft at Qingqa Mntana Disposable Products project, we are convinced that the offenders either are, or were closely involved, or associated with departmental officials closely involved in the oversight of these three projects”.
The case could be solved “if the investigative momentum is maintained and leads pursued”.
The investigators further recommended to the department of social development that any individual implicated “in neglect or dishonesty” in relation to the projects should be held accountable, consistent with the prescripts of the Public Finance Management Act.
Cecilia Makiwane Hospital CEO Dr Mtandeki Xamlashe said having diapers and sanitary towels manufactured in the Eastern Cape would not only improve delivery, but also benefit the provincial economy.
“The private sector in the province needs to wake up and create dialogue about this,” Xamlashe said.
“Having these products manufactured here would be beneficial for the provincial economy and it would create job opportunities.”
He said many of the suppliers were based in Gauteng and KwaZuluNatal and as a result some provincial hospitals experienced delivery delays.
“Can you imagine the catastrophe if they went under? At least if it were local companies, checking them would not be as difficult,” he added.
Xamlashe said at CMH they tried their best to ensure sufficient stock was on hand to ensure that they never ran out of the items “because they are essential. But sometimes they are not delivered on time and that is inconvenient”.
Health department spokesman Siyanda Manana said the department did not check on where their suppliers were based when awarding contracts.
“We deal with suppliers from the provincial database and we do not check where they are based. We look at various factors, including the cost implications, when choosing such companies,” Manana said. — asandan@dispatch.co.za / siyab@dispatch.co.za
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