South African President Cyril Ramaphosa has authorised a probe into SA Tourism over allegations of serious maladministration and improper conduct linked to media buying contracts and payment for services not rendered. Tourism Minister Patricia de Lille said in a statement she had written to the President to request the investigation.
The Special Investigating Unit (SIU) probe is linked to three specific invoices and purchase orders, and covers allegations raised between March 1, 2020, and November 21 this year.
“The investigation will focus on contracts where media buying services were paid for but either not delivered or not fully executed as stipulated in the agreements. The investigation will determine whether the media buying contracts and related payments were conducted in a manner that was not fair, competitive, transparent, equitable or cost-effective,” SIU Spokesperson Kaizer Kganyago said in a press statement.
The SIU will also examine potential violations of applicable National Treasury legislation and assess whether proper procurement processes were followed, particularly concerning payments for services not rendered.
“The scope of the investigation includes any irregular, unlawful or improper conduct by officials or employees of SA Tourism, the applicable suppliers or service providers, and any other person or entity involved in the alleged scheme involving media buying and services not rendered,” said Kganyago.
Haseena Ismail, DA Spokesperson on Tourism, said the invoices in question originate from the time when now-suspended CEO Nombulelo Guliwe was serving as SA Tourism’s CFO.
“It was during her tenure as CFO and later as CEO that SA Tourism recorded repeated qualified audits, incurred unauthorised expenditure and became mired in scandals that shattered industry confidence,” said Ismail.
Ismail added that the DA has long warned that SA Tourism’s procurement environment is “riddled with irregularities and persistent failures in financial controls.”
De Lille said she would ensure the full cooperation of SA Tourism in the investigation.
"I want to assure the public, Parliament and our stakeholders in the tourism sector that I will ensure that SA Tourism fully cooperates with the SIU's investigation."
Ismail claimed, however, that governance issues at SA Tourism were exacerbated by De Lille’s dissolving of the entity’s former Board in August, following their decision to suspend Guliwe as a result of her alleged links to irregular expenditure.
“At the time, Minister De Lille insisted there was ‘absolutely no crisis’. Today’s SIU referral confirms what we have argued all along: there was a crisis and it was deep.
“The DA therefore welcomes this investigation as a necessary step towards recovering losses and exposing the full extent of the dysfunction that has plagued SA Tourism,” said Ismail.
The SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action.
