RTMC funds spent on pantyhose
Pantyhose and comfy shoes are just some items bought with R34 million allocated to Northern Cape Transport Department
|||Kimberley - Just a few of the items purchased with funds that were allocated to the Northern Cape from the Road Traffic Management Corporation (RTMC) include ladies pantyhose to the value of R20 976, Green Cross ladies shoes (R107 217), body armour/bullet proof vests (R249 037), a video conferencing system worth R1.4 million and website design and development at a cost of R435 000.
The Northern Cape Department of Transport, Safety and Liaison appointed a company as the implementing agents in December 2014, in order to implement road and safety awareness on behalf of the department.
The company, based in Johannesburg, received R34 million from the RTMC.
It was also agreed that they would be entitled to a 12.5 percent (R4 million) commission as administration fees on all funds deposited directly by the department into a bank account specifically earmarked for this purpose.
Spokeswoman for the Department of Transport, Safety and Liaison, Keitumetse Moticoe, indicated that the department would “not be responding to the enquiry” and referred all enquiries to the company. No contact details for the company were provided and the DFA could not find any contact numbers listed on any website directory.
The financial statements of the company, as of March 31 this year, indicated that there was a remaining bank balance of R5 million.
Expenditure included R1 million for office furniture from a furniture company and R198 000 for lime green golf T-shirts.
Up until May this year service providers submitted further invoices to the value of R11 million.
A portion of the invoices are outstanding while more than R6 million has already been paid for the provision of items including black combat boots (R122 042), white nylon gloves (R11 970), R600 000 to stimulate youth debates on radio stations, R107 217 for epaulettes with gold buttons and R730 000 on branding.
During April three different service providers collectively invoiced the company R2 million for the renovation and expansion of weighbridges in Upington, Mothibistad and Kimberley.
The appointed service providers have requested advance payments.
One of them advertised their enterprise as being suppliers of office furniture and computer equipment.
Another service provider was paid R322 300 for electrical work, drilling a borehole, building a toilet for the disabled, painting and erecting a new counter at the Mothibistad traffic station.
Chairman of the Northern Cape Civics Organisation Ross Henderson questioned the relevant experience and ability of the appointed company, as well as the services providers who were contracted, to deliver on the job.
“No tender was advertised and supply chain management processes were bypassed. It amounts to wasteful expenditure to outsource the core functions of the department to an external company. What expertise does a business that supplies office furniture have to enable it to renovate weighbridges?”
He stated that they would report the matter to the police to investigate possible money laundering and the misappropriation of funds.
“The expenditure incurred is not related to road or safety awareness. If bullet proof vests are required, surely the police and the riot squad could be called in to assist. The maintenance and electrical work of state buildings is the responsibility of the Department of Roads and Public Works.
“An independent forensic audit should be done on the expenses and the department must conduct an internal investigation as the agreement was signed without any witnesses.”
Henderson added that the department should also release a progress report to determine whether the said services were provided. “Why was this irregular expenditure never picked up by the Auditor General’s Office?”
The Auditor General indicated on Tuesday that it could only provide a response on Wednesday as it was still gathering the necessary information.
Money earmarked for the implementation of road and safety awareness in the Northern Cape was used for:
Ladies pantyhose – R20 976
Green Cross ladies shoes – R107 217
Body armour/bullet proof vests – R249 037
Video conferencing system – R1.4 million
Website – R435 000
Office furniture – R1 million
Lime green golf T-shirts – R198 000
Black combat boots – R122 042
White nylon gloves – R11 970
Youth debates – R600 000
Epaulettes with gold buttons – R107 217
Branding – R730 000
Electrical work – R322 300
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