The Special Investigating Unit (SIU) says the Unemployment Insurance Fund\u2019s appointment of five service providers to flight radio awareness campaigns related to the Temporary Employee\/Employer Relief Scheme (TERS) was an unlawful failure of duty on the part of the fund\u2019s supply chain management.<\/P>
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This was revealed by SIU lead investigator into the TERS fund, Johnny le Roux, during the unit\u2019s Parliamentary briefing of the Standing Committee on Public Accounts.<\/P>
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Le Roux said at least R6.1 million was unlawfully spent on these contracts under the guise that the privately owned radio stations were the sole providers of that service.<\/P>
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\u201cWhen the investigation commenced we found that the five service providers were appointed without following any SCM [supply chain management] process. The appointments were not in compliance with\u2026the Constitution or the PFMA [Public Finance Management Act].<\/P>
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\u201cThe motivation for the use of \u2018sole service provider\u2019 amounted to a misrepresentation due to the fact that there were several other commercial radio stations registered with ICASA in the respective provinces,\u201d he said.<\/P>
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Le Roux added that furthermore, state run broadcaster \u2013 the SABC \u2013 could have flighted the awareness campaigns.<\/P>
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\u201cOne SCM official failed in her duties when she allowed the [Unemployment Insurance Fund\u2019s] marketing and communication department to predetermine the names of the service providers. This failure resulted in irregular expenditure.<\/P>
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\u201cThe recommendations, approvals and appointments of these services providers were therefore in contravention of Section 51 (a)(iii) of the PFMA,\u201d he said.<\/P>
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At least seven officials have been referred for disciplinary action with five receiving written warnings.<\/P>
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Two hearings are still ongoing.<\/P>
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The Chief Operating Officer and then UIF Commissioner are also undergoing disciplinary hearings.<\/P>
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Source: South African Government News Agency<\/P>
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