1. INDLELA Presentation to the Portfolio Committee Higher Education and Training 23 February 2010

2. Introduction Transfer of administrative functions and operations was effected with the issuing of the Presidential Proclamation on the 4 September 2009 The transfer of the budget vote could however only take place on the 1 April 2010 The process for the transfer of the administrative and operational functions was effectively achieved by July 2010 The Minister of Higher Education and Training (MoHET) received a full briefing of the transfer of administrative and operational function and the budget. The briefing also included the challenges at INDLELA

3. Introduction Concerns and allegations regarding impropriety and mismanagement were brought to the attention of DG and Minister: HET The Minister was briefed on the challenges of impropriety at INDLELA The Minister instructed the DHET to convene a meeting with the two Union Branch representatives including INDLELA site representatives of NEHAWU and PSA. Subsequently the Minister instructed the DHET to conduct a full forensic investigation at INDLELA. The Minister also ensured that the Portfolio Committee was alerted about the INDLELA challenges and efforts to address these.

4. Challenges The reputable audit firm OMA was appointed to conduct the forensic investigation. The forensic investigation covered the financial years 2008-2010 and focused on the following activities: – Assessment – Fixed Assets – Housing – Kitchen – Overtime and leave – Transport – Social Club funds – Supply Chain Management

5. action The DHET appointed a consultant to strengthen the administrative systems at INDLELA. There is also an internal effort to effect better controls by centralising all the corporate functions conducted at INDLELA The consultant provided the following support :  Implementation of a messenger service between INDLELA and the Department’s office building in Pretoria  Ensure no private catering is done by INDLELA  The official responsible for doing the daily bank deposit, if not the cashier, must verify the amount and sign for it in a register  Secure and control vehicle petrol cards  Update housing registers to reflect the correct occupants, and ensure the correct housing allowance is paid and rental deducted from the official  Officials to pay in the rental shortfall for housing for April 2010

6. action con’t  Align housing policy with DPSA prescripts derived from the PSCBC resolutions  Develop and implement a standardised gate pass  Process all arrear payments  Developed policy on availing INDLELA venues for meetings other than INDLELA meetings  INDLELA to comply with the Department’s working hours  Overtime must be approved in advance  Reviewing of the procedure of approving new orders to be placed  Prohibit all private work at INDLELA  Prohibit INDLELA tools and equipment being borrowed by staff and ensure that all tools and equipment previously borrowed are returned.  Schedule regular meetings between management and the unions active at INDLELA

7. action con’t  Petty cash and petty cash purchases should be limited as far as possible  Successful bidders must immediately be notified in writing and an order for the service/goods must be generated on the LOGIS system  Review the parameter fencing and security technology plans for INDLELA  Closure of the golf course  Check the content of all vehicles and parcels entering and exiting INDLELA  Resolve all outstanding all disputes, grievances and disciplinary charges  Investigate the five cases of alleged corruption reported by whistle blowers  Ensure all documents are sorted and archived as prescribed

8. action  Key control measures introduced  The closure of the social club account and the tuck shop  Prepare correct number of meals to avoid abuse  Develop a new filling system  Ensure only the cashier receives payment  Introduce a clocking system for security personnel

9. action Based on the challenges above identified on slide 4, the DHET then appointed a private company (OMA) to conduct a forensic audit and submit a report and recommendation to the Department A report on the forensic audit was submitted to the CFO and ADG during December 2010 by the audit firm, OMA. The report is currently been processed to determine all the legal implications prior to its implementation. Collaboration between DHET and the Police has been initiated for possible criminal proceedings The Department is currently preparing disciplinary proceedings against alleged offenders

10. Thank You Questions