Transport Portfolio Committee Disciplinary Actions Report

REPORT ON INVESTIGATIONS AND DISCIPLINARY ACTIONS TRANSPORT PORTFOLIO COMMITTEE 1 Transport Gateway to Africa and the World

PURPOSE The purpose of this report is to apprise the Transport Portfolio Committee on investigations and disciplinary actions undertaken by the department in relation to various transgressions 2 2 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Background The department of transport implements the disciplinary actions to various transgressions in line with resolution 1 of 2003, which is the disciplinary code for the Public Service. These nature of these transgressions include maladministration , misconduct , insubordination, fraud and corruption Transgressions emanate from normal day to day operations while others emanate from various audit reports including the Auditor General s(AG) report . Most transgressions emanating from the AG report are supply chain management related and in many instances, they cause the department to incur irregular expenditure 3 3 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

General Cases The department currently has a total of 30 cases relating to misconduct. Which are handled by labour relations directorate . These are categorized as follows : Transgressions Fraud Maladministration Misuse of State vehicle Insubordination Precautionary transfer Bribery No of cases 6 13 6 3 1 1 Total 30 4 4 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Status of general cases These cases are in different stages as follows : o 8 are awaiting hearing date to be set o 10 are awaiting sanction to be handed over o 2 awaiting finalization of the employer representative report o 2 awaiting charge sheets to be drawn up o 8 investigations are in progress 5 5 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Schedule of irregular expenditure Following the report issued by the AG in year 2019 which identified irregular expenditure incurred between 2013 and 2019 from a sample of transactions The department identified irregular expenditure and further investigations had to be undertaken to make a determination on the next action. Nature of transgression No of orders involved Value of irregular expenditure Bid Committees not complied with 02 R 95,292,010 Use of expired contract for Plant Hire Month to month contract extension 169 74 R 1,016,328,688,54 R263,778,696,78 Non adherence to contract conditions 1 R 7,820,096,78 Failure to advertise on CIDB website 1 R 39,479,584,57 6 6 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Process: Schedule of irregular expenditure cont. Nature of transgression Failure to obtain 3 quotes Competitive bidding process not followed Condition of bids not complied with No of orders involved Value of irregular expenditure R 1,016,191,62 R 1,370,798,789,66 14 136 1 R11,134,92 Contract management Delegations not adhered to Incorrect CIDB grading Order issued after work done PPPFA incorrectly applied PPPFA not adhered to PPPFA not applied 26 2 2 1 1 8 4 R 2,553,261,08 R 23,966,479,11 R 23,981,261,31 R 8,420,30 R 177,260,60 R 494,608,91 R 25,320,843,55 7 7 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Process: Schedule of irregular expenditure cont. Nature of transgression 3 Quotes requested but received less than 3 No of orders involved Value of irregular expenditure R 49,932,00 1 Use of a single source supplier Splitting of orders 26 17 R 25,320,843,55 R 3,088,177,20 8 8 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Status of investigations relating to irregular expenditure The department appointed a service provider to investigate and make a determination of irregular expenditure and recommend necessary actions Progress on investigations is as follows: taken against the transgressing officials. Description No. of orders No of Officials identified, including repeat cases Investigations completed 95 87 Investigations completed but not yet handed over to Labour Relations 127 66 9 9 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Status of investigations relating to irregular expenditure The table below represents all the reports finalised and submitted to Provincial Treasury for condonation .The number of officials identified includes official s names repeated in multiple transactions. Nature of transgression No of orders No of officials identified Value of irregular expenditure R 95,292,010 Bid Committees not properly constituted Use of expired contract for Plant Hire Month to month contract Engineering Consultants Other 02 3 37 41 56 12 R 194,427,786 R 240,856,460 15 16 R 490,861,029 95.0 87 R 1,021,437,286.8 10 10 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Process: Progress with disciplinary actions Process: Post the investigations conducted by the service provider , a report is submitted to Labour Relations component with recommendations of the officials against whom disciplinary action must be taken Labour Relations compiles a submission which is approved by the Head of Department for the disciplinary action to be instituted The immediate supervisor is furnished with the recommendation for disciplinary action against the implicated official 11 11 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Process: Progress with disciplinary actions Out of a total of 30 cases investigated and finalized , only eight (8) officials have been successfully disciplined . The Labour relations component is still awaiting feedback from immediate supervisors to institute disciplinary actions as per recommendations . In many instances supervisors disagree with the findings of the investigation and are reluctant to institute disciplinary actions 12 12 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Forensic investigations Forensic cases The department outsources all forensic investigations to the Forensic Unit in the Office of the Premier. A total of 21 cases were referred to the forensic unit for investigation of which 10 are completed and 11 are in progress. 13 13 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Forensic investigations The status of the 10 completed cases is as follows : Status of case/s Number of cases 3 1 2 Cases attended by SAPS / Hawks for investigations Cases in a process of being closed by OTP Cases recently completed and presented to the Acting HOD Cases wherein the department is implementing recommendations 1 Cases wherein Implementation of recommendations by the MEC are underway 1 Cases wherein first phase investigation is completed and allegations were unfounded , second investigation is unfolding 1 Cases where disciplinary actions have been implemented resulting in a dismissal , official has appealed 1 14 14 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Challenges Refusal by some immediate supervisors to institute disciplinary actions as they may disagree with the findings of the investigations Affected officials do not communicate with Labour Relations as to the reasons for not implementing the disciplinary process Lack of capacity of the labour relations component to deliver according to expectations due to vacant posts within that component Delay in finalizing investigations due to the volume of the transactions 15 15 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

Recommendations It is recommended that the committee notes the report 16 16 Transport Gateway to Africa and the World Transport Gateway to Africa and the World

THANK YOU 17 17 Transport Gateway to Africa and the World Transport Gateway to Africa and the World