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Findings of stalled audit of Robben Island Museum reveal gross mismanagement, plundered public funds and under-qualified leadership
National government has failed to preserve a World Heritage site and important monument of our history
DA to request minister appear before Parliament to account for excuses in not making damaging report public





After two years of running the gauntlet of state secrecy through repeated declined Promotion of Access of Information (PAIA) requests, ignored letters and the evasion of parliamentary questions, the Democratic Alliance (DA) has finally gained access to the forensic audit into irregularities at Robben Island Museum (RIM) completed in 2008. The findings of the audit reveal gross maladministration, plundered public funds, under-qualified leadership and no real consequences for those responsible for mismanaging this World Heritage site and one of the most important monuments of our history.

The audit report document provided to the DA by the Department of Arts and Culture does not indicate who the forensic report was completed by, but the parliamentary question it was attached to reveals that it was completed by Outsourced Risk and Compliance Assessment (ORCA).

The existence of the forensic report first came to light in 2008 and we were given all sorts of excuses at every turn by the Department of Arts and Culture as to why its findings could not be made public. For example, in response to a DA parliamentary question in April 2009, the Minister stated that the forensic report was being utilised in an ongoing hearing. However, all disciplinary hearings at the museum had already been completed at that stage.

The DA will write to the Chairperson of the Portfolio Committee on Arts and Culture and request that the Minister be summoned to Parliament to account for the reasons why this report was not made public and to account why its recommendations have seemingly not been implemented in light of RIM's qualified audit report this year. We may also need to call Pallo Jordan to appear before the committee to answer outstanding questions over the report.

The report reveals a dire state of affairs at RIM at the time:

• Executive Management at the RIM received salary increases of 259% between 2004 and 2007.
• Operating circumstances were allowed to develop that saw operating expenses increase at more than five times the rate of revenue growth.
• Auditors recommended that charges be brought against the CEO and CFO for gross dishonesty and misconduct following eighteen charges of negligence. However the Minister of Arts and Culture at the time, Pallo Jordan, allowed them to resign ‘quietly' to avoid ‘embarrassment'.
• By the end of 2008 RIM had been awarded bailouts from National Treasury in excess of R64 million.
• A number of those in senior leadership at RIM at the time were under-qualified. For example, the Chief Financial Officer (CFO) Nash Masekwameng, had been appointed despite not having a university accounting related degree or the experience required by virtue of his duty of managing the finances of RIM. No performance management contract was in place, resulting in his failure to deliver on objectives, including the drawing up of an appropriate budget for RIM. RIM made losses close to R25 million during his tenure of Mr. Masekwameng. Also during his tenure, salaries comprised 50% of the total expense of RIM's budget and in 2007 and for every one rand received from tourism revenue, R2.50 was paid to staff in salaries.
• The auditors also found that RIM did not have effective systems and processes in place to prevent and/or detect any occurrences of fruitless and wasteful expenditure, losses resulting from criminal conduct and irregular expenditure. Nor was there an effective system of financial management and internal control in place. This also relates to the procurement and provisioning system. These matters do not seem to have been remedied to date as they were also highlighted by the Auditor-General in RIM's 2009/10 qualified annual report.
• The report also reveals serious irregularities in the purchase of the ferry, which reportedly is the dry dock for the seventh time last week since its launch is February 2008. According to the auditors, the contract entered into by RIM management for the purchase of the ferry was one-sided in favour of the company contracted to deliver the ferry.

These are profoundly disturbing findings, and raise new questions about Pallo Jordan's decision to allow quiet resignations, rather than to see through the charges against the museum's CEO and CFO. The state of Robben Island Museum is tragic. This is a crucial national monument, and we need lasting solutions and renewed transparency from the Department of Arts and Culture to preserve our precious World Heritage site for future generations.