African Eye News Service (South Africa)
November 28, 1999
by Justin Arenstein & Phillip Nkosi
Nelspruit - Mpumalanga has appointed its former chief finance
director Shadrack Mashele to a lucrative Y2K contract just weeks
after forcing him to resign from government on fraud charges.
It is doubtful whether Mashele will be able to complete the contract,
however, with police confirming on Friday that they expect to arrest
him on fraud charges before Christmas.
Mashele was quietly awarded the tender to ensure all computer
systems in Premier Ndaweni Mahlangu's office were Y2K compliant
just three weeks after he resigned amidst revelations that he abused
his position to pay off private debts with taxmoney.
The Tender Board refused this week to say whether Mashele applied
for the tender while still working for government or whether he had the
necessary information technology skills.
The contract will give Mashele access to some highly sensitive
government information systems.
The provincial legislature is meanwhile also still demanding an
explanation for why government allowed Mashele to resign with a
large package when he was accused of stealing at least R120 000
from the provincial coffers to pay off a private business debt.
A Waterval Boven bakery owner has already made sworn statements
to the police confirming that Mashele paid off his debt with
government cheques.
Neither Mahlangu nor his administration would say on Friday how big
Mashele' s resignation package was.
The resignation and alleged fraud are being probed by the Auditor
General, who has yet to rule on Mashele's role in an earlier
R16-million scam involving Senoko Enterprises.
Mashele was found guilty by an internal hearing of helping Senoko
Enterprises try embezzle over R16-million from the provincial
education department by claiming for non-existent services to rural
schools.
He was found guilty on four misconduct charges in July last year
following confirmation that relatives served prominently on Senoko's
board and that he drafted fraudulent letters supporting the companies
claims for R16-million.
The scam was detected after only R273 000 was paid out, but not in
time to prevent the Northern Province from losing R35-million to
Senoko in similar circumstances.
Senoko owner, Walter Senoko, closed shop and filed for bankruptcy
but has since been acquitted of fraud after the Pietersburg Regional
Court ruled this month that government financial control systems in the
Northern Province were defective.
The court also ruled there was insufficient evidence indicating
Senoko himself intended defrauding anyone.
Senoko was never charged for his activities in Mpumalanga, with the
provincial administration preferring to charge Mashele internally for
writing fraudulent letters, of attempting to mislead investigators, of
irregularly transferring R273 000 to Senoko and of misappropriating
a luxury government vehicle.
Mashele lodged an appeal against his dismissal with the province's
internal Conciliation Board, which ruled this year that his actions were
more negligence than intentional fraud and that he had actually played
a role in stopping further payment to Senoko.
The Board neglected, however, to call for testimony from the
province's own Internal Audit Unit or from the specially contracted
forensic auditors, Corneliussen & Co.
The two teams spent over R350 000 digging up the evidence that got
Mashele fired in 1997. Leaked documentation from the investigation
indicates Mashele flaunted Treasury regulations while transferring just
over R273 000 to Senoko in a series of "hidden" payments, each of
which was just under R50 000.
All payments larger than R50 000 have to be motivated in writing and
approved by the provincial director general.
The money was also not paid directly to Senoko but was instead
electronically transferred to the Johannesburg-based firm, Deneys
Reitz Attorneys, in trust for Senoko.
The move initially stumped forensic auditors, who were looking for a
single cheque payment directly to Senoko.
Records from the original disciplinary hearings also indicate that
Mashele used a State subsidy to buy an official vehicle but then
irregularly requisitioned a government-issue VR6 VW Jetta from the
State Garage for everyday use.
He blew the vehicle's engine, apparently after failing to check it had
water. The State paid for all repairs.
Copyright (c) 1999 African Eye News Service. Distributed via Africa
News Online (www.africanews.org).
This article located at:
http://www.africanews.org/south/southafrica/stories/19991128/19991128_feat2.html
Commentary - Notes:
THEY PROTECT THEIR OWN KIND!
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