Porn and corruption stalk aerospace village
A probe into the Centurion Aerospace Village finds irregular spending, including on porn sites, conflicts of interest and legal breaches.
|||Johannesburg - A forensic probe into the Centurion Aerospace Village has uncovered widespread irregular spending, including on porn sites, conflicts of interest and breaches of the law meant to ensure taxpayers’ money is properly spent.
A report compiled by Nexus Forensic Services - dated last June and in IOL’s possession - notes taxpayers’ money was used by a Village official to browse a porn site - www.esa.co.za in addition to other irregularities.
Although Centurion Aerospace Village does not fall under the Public Financial Management Act (PFMA), it had contractually agreed with its parent body, the Department of Trade and Industry (DTI) to be held to its standards as to how government money should be spent. As a result, any breaches of that law are illegal, explains Nexus.
The Centurion Aerospace Village forms part of the Department of Trade and Industry's Aerospace Industry Support Initiative, which seeks to upgrade and reposition the South African aerospace industry in the growing global aerospace market. It is situated on state land adjacent to Aerosud and Air Force Base Waterkloof in Pierre van Ryneveld and is one of several initiatives, including the National Aerospace Centre of Excellence, developed to create globally competitive aerospace clusters.
The first phase of the three-phase development was set to cost about R130 million, although documents provided by the DA alongside the forensic report shows the department transferred a total of R95 million was transferred to the village between 2010/11 and 2014/15.
No paperwork
However, the report implicates the village in irregular spending of at least R85 million. The final report was commissioned by the Department of Trade and Industry and parts of it have been redacted.
Among its findings, the report - which probed events going back to 2007 - notes R642 698 was withdrawn from two accounts, but cannot be accounted for. Nexus recommends trade and industry seeks to get that money back if the village cannot provide proof of where it was spent.
The report also found the balance sheet was understated, board meetings were not signed off and some board members also had conflicts of interest. In addition, not all service providers were - as is required by law - appointed by the board.
Nexus says it could not locate approvals from the board, management or executive committee for the appointment of five service providers, which collectively earned R85 million.
In addition, there was no approved business plan, some officials illegally connected electricity to a CAV building, equipment was bought without approval and other supply chain management and procurement irregularities.
‘Job-killing corruption’
Addressing the media on the unveiling of the report, the Democratic Alliance’s shadow deputy minister of Economic Development, Patrick Atkinson, said the village had turned into “yet another example of job-killing corruption”.
Atkinson says the village had the potential to create thousands of high-skilled niche job opportunities, potential he says “cannot be overstated, as the village was set to become a key feature of the South African aerospace industry”.
Instead, notes Atkinson, the forensic report - which the official opposition secured through a Promotion of Access to Information Act application, shows “maladministration and unauthorised expenditure running into the millions under the DTI’s watch”.
“The report makes an array of damning findings ranging from financial irregularities to possible tender fraud and corruption.”
Atkinson adds the report also recommends that both CAV and government officials be held civilly, and in at least one instance, criminally liable.
Some of the most “egregious” examples of corruption highlighted by Atkinson includes a reckless tender appointment, including a R65 million tender for bulk earthworks and infrastructure being irregularly awarded.
Other issues he points out include the appointment of service providers without approval, and funds being spent that cannot be accounted for.
Atkinson also notes the report found a reasonable suspicion of fraud and corruption in total expenditure on catering to the value of R1.1 million.
He says trade and industry minister Rob Davies has subsequently said that a “turn-around strategy” has been put in place to strengthen management and financial frameworks, strengthen the board, and appoint a CEO at the village. However, Atkinson will also call on the minister to provide answers as to what action it will take to recoup money.
“The DA will continue to ensure that every cent of public money is spent on improving the lives and creating opportunities for all South Africans, and that job-killing corruption is eradicated, once and for all.”
IOL