In today’s Portfolio Committee on Trade and Industry, Minister Rob Davies presented a watered down version of the forensic report into the financial affairs at the National Gambling Board, which “focuses on systematic issues in general, not allegations relating to individuals”.

This is simply inadequate. The names of those who are responsible must be fully disclosed. 

I will therefore today be writing to Minister Davies, calling for the release of the full uncensored report, so that effective accountability can occur. Failing which, I will institute a Promotion of Access to Information Act (PAIA) application to gain access to the full report.

The Minister spent a considerable amount of time outlining the findings of this report, which included the following:

• The NGB’s irregular expenditure was R3 610 263.00 for the financial year ending 31 March 2014, with the accounting authority failing to take steps to prevent this.
• The irregular appointment of a law firm by NGB at a cost of R2 211 600.00, which was signed 2 September 2014 and then backdated to 22 August 2014, constituting fraud.
• The NGB failed to comply with strategic plans and annual performance plans, and failed to disclose the establishment of a trust worth over R4 million.
• The board formed a sub-committee to procure a new National Central Electronic Monitoring System (NCEMS). There are no minutes or recordings of the meeting, and the process for the sourcing of the operator was found to be flawed. The procurement is worth over R1 billion.
• The procurement of a lease for office premises was flawed. The required lease space was 714 square metres, yet the leased building is 1800 square metres. The lease costs R50 million over 10 years, which is 3 times the normal cost per square metre. Moreover, two of the three bids were from the same group of legal entities.

While these findings are very serious, until the names of those responsible are disclosed, no one is being held to account.

Minister Davies must therefore, without delay:

• Release the full forensic report, including the names of all implicated;
• Take immediate steps to tighten accounting controls within the entities his department oversees;
• Commit to ensuring all money that was wasted is recouped;
• Ensure criminal charges are laid against anyone found to be against the law;
• Ensure measures are taken to either cancel the lease or sublease the unused building.

It is not enough for the Minister to simply ensure this will not happen again in the future. Those responsible for recklessly gambling with taxpayers’ money must be held accountable.

Issued by DA