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In October 2008 the Office of the Premier instructed Peter Harris of the Resolve Group to conduct an investigation into allegations made by the Head of Department of Public Transport, Roads and Works, Mr Sibusiso Buthelezi against MEC Ignatius Jacobs as well as allegations of misconduct made by the MEC against the Head of Department. The terms of reference were to investigate: * Allegations by the Head of Department, Sibusiso Buthelezi against the MEC, Mr Ignatius Jacobs; * Allegations by the Head of Department against officials; and * Allegations of possible misconduct that may be made by the MEC against the Head of Department Peter Harris' report was received by the Office of the Premier on 08 June 2010. The Head of Department made several allegations against the MEC accusing him of meeting with senior managers of the department and giving them instructions to meet with potential contractors to discuss contracts without prior tenders being issued or advertised and to grant contracts without following due process. The allegations are detailed in full in the report. The MEC also made a number of allegations against the Head of Department relating to the performance of the Head of Department, corruption and violation of the Public Finance Management Act. The allegations are detailed in full in the report. According to the report all the allegations made by both the Head of Department and the MEC except the matter concerning the Kempton Park Hospital Project were fully investigated and finalised. In respect of the allegations relating to the acts of corruption made by the Head of Department against the MEC, the allegations were found to be unsubstantiated in that the investigators have not been provided with sufficient information to corroborate the allegations made. The investigation has however highlighted the need for greater clarity regarding the relationship between the MEC and the head of department and the role played by each in respect of the department. In respect of the allegations made by the MEC against the head of department the investigation found that the head of department had contravened or failed to comply with key provisions of the Public Finance Management Act, Treasury Regulations and Treasury Supply Chain Management Practice Notes which have exposed the Department to significant financial risk. Details of these violations are provided in the report (page 363). The investigation recommended that disciplinary action be instituted against the head of department in respect of all acts of contravention and/or non-compliance with the PFMA and Treasury Regulations. Regarding the allegation relating to the Kempton Park Hospital Project, the report recommends that the investigation should be finalised once all relevant documents have been submitted. I have accepted the report in its entirety and had requested that the MEC for Roads and Transport institute disciplinary action against Mr Buthelezi as the report had recommended. Following this request, Mr Buthelezi was suspended on July 14 2009 and later charged with misconduct. A few months later it became apparent that the disciplinary case against Mr Buthelezi would drag on for a lengthy period and could potentially paralyse the functioning of the department. To avoid this lengthy and expensive process the Department of Roads and Transport in November 2009 reached a settlement with Mr Buthelezi. The settlement terms saw Buthelezi leave the department and accept payment of one year of the remaining term of his contract and the department in turn withdrew all charges against him. This settlement did not in any way undermine the Gauteng Provincial Government's resolve to fight corruption and its commitment to clean governance. We remain steadfast in our resolve to fight corruption in all public institutions and to act decisively against any one in government who is found guilty of corruption. The Resolve Group's report was passed on to other relevant institutions which are competent to conduct further investigations on any of the matters where adverse findings were made and if necessary they will conduct such investigations and take appropriate action. The Gauteng Provincial Government will co-operate fully with such investigations if they are instituted. Issued by the Office of the Premier Gauteng Provincial Government