Post Office probes top execs

The chief executive and the chief operating officer of the SA Post Office are facing disciplinary action over irregular and fruitless expenditure incurred on a lease for the parastatal’s new head office.

The chairwoman of the Post Office board of directors, Vuyo Mahlati, yesterday said there was irregular expenditure of R425 million and fruitless and wasteful expenditure of R19m that was in breach of the Public Finance Management Act.

Mahlati said the suspected involvement of chief executive Motswanesi Lefoka and chief operating officer John Wentzel came to light after they were questioned by a journalist at a press conference concerning the expenditure.

The 16-month investigation was launched by the board following unsolicited complaints from staff in relation to the procurement of the lease.

“The investigation found various governance deficiencies as well as misrepresentation of facts to the board and resulted in a broader investigation being undertaken,” Mahlati said.

The probe was conducted by auditing firm Deloitte and law firms Cliffe Dekker Attorneys and Mkhabela Huntley Adekeye. The board engaged Communications Minister Roy Padayachie throughout the investigation and meetings were held with leaders of the Communication Workers’ Union (CWU), Mahlati said.

Efforts to determine the liability of individuals had begun and it would be followed by a process to recover the R19m.

Information from the probe had been handed over to the police for criminal investigation and prosecution.

Mahlati said the Post Office was now reviewing the lease contract, which was handled by the property division of the parastatal.

Mahlati said that late in 2009 the board was presented with a business case by the executive management and it suggested moving to Centurion. Based on the information before it, it was logical to accept it.

This is, however, in contrast to a July 21 statement by the CWU. The union said the Post Office had made a presentation in March 2010 about its intention to relocate its headquarters to Eco Park, a move that would cost the company about R3.9m a month.

“The CWU outrightly objected, citing that the rental amount is exorbitant and does not present a well thought business rationale, both economically and socially,” it said.

The CWU said it was clear that this transaction was premeditated or concocted to enrich certain senior officials, alleging that Marieke Lancaster, the group executive of strategy, was involved as well as Lefoka and Wentzel.

“Subsequently, we formally declared a dispute in November 2010 about the move to the new offices, alleging that no proper procurement processes were followed. The CWU then raised the matter with the chief executive who did not respond and as a result the matter was escalated to the chairperson of the board, who promised to look into the matter,” the union said.

As with the police headquarters case involving the Department of Public Works, public protector Thuli Madonsela has now been drawn in.

CWU general secretary Galland Roberts said yesterday that the union had met with Madonsela’s representative on July 26 where the union laid a complaint. It had been promised feedback within three weeks.

The cases of three other employees were referred to the police. One is an executive director who had been given a final written warning and was subject to disciplinary action. The other two senior managers were no longer in the employ of the Post Office, Mahlati said. - Wiseman Khuzwayo