Public Works minister reacts to staggering irregular spending

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 Public Works Minister, Thulas Nxesi, says irregular expenditure has cost his department a staggering R34.9 billion.

Speaking to the media in Pretoria on Monday, Nxesi said some of the irregular expenditure goes back to 2001.

Nxesi said the irregular expenditure was caused by incomplete documentation, incorrect approval of transactions, non-competitive bidding processes, incorrect calculations, and emergency
procurement for non-emergency situations.

The irregular expenditure was uncovered during the review of all transactions dating back to 2009/10.

The Public Works Minister says of the total amount of irregular expenditure, R1.1 billion is suspected to have been lost to fraud and corruption.

"The extent of irregular expenditure in the public works department will be laid bare and legal processes will be pursued to promote good governance" he said

"In this financial year, about 15 cases are being investigated including the Nkandla investigation by the SIU (Special Investigating Unit)."

Some of the employees allegedly involved had since left the department. He listed several cases including employees and property moguls.

"An official at the Pretoria regional office, Mrs Keneilwe Matlodi, is facing criminal charges in the commercial crimes court after allegedly soliciting R600,000 from a service provider," said
Nxesi.

"The department laid criminal charges against Mr Roux Shabangu and Mr [Japie] van Niekerk for allegedly benefiting in a fraudulent
lease."

He said the department had laid criminal charges against former official Noyoliso Ntwana, who was found guilty in a disciplinary hearing in connection with R63 million spent on the renovation of ministerial houses in Pretoria.

Criminal charges had been laid against the department's former director of property management Vusi Mashiyane and former deputy
director Bella Tlolane.

Nxesi said of 23 companies being investigated for procurement irregularities, 15 related to security upgrades at President Jacob Zuma's Nkandla, KwaZulu-Natal, homestead.