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No labour audit report - KPMG

Jun 08 2010 17:36

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Johannesburg - According to auditing firm KPMG, a forensic report which alleges massive corruption in the department of labour does not exist.
  
"KPMG has never issued a report regarding the department of labour 'that had unearthed massive fraud and corruption'," executive director Danie van Heerden said.
  
"This is entirely consistent with Labour Minister Membathisi Mdladlana's adamant denial of any knowledge of such an audit report being commissioned by his department."
 
A report in the Sunday Times attributed the suspension of labour director general Jimmy Manyi to a KPMG forensic audit that "unearthed massive fraud and corruption" in the department.
 
"While KPMG has been engaged to perform certain professional services with regard to the department of labour, for the past few years none of these have included the commissioning of any forensic investigations," Van Heerden said.
  
"Any reference in the media to such a KPMG forensic audit report is therefore factually incorrect."
  
Mdladlana challenged KPMG to release the report on Tuesday.
  
"I have never discussed such a report with my director general," he said.
  
"This is a classic example of statements that are devoid of any shred of truth which add deeper darkness to a night already devoid of stars."
  
Manyi made headlines recently when Norway's ambassador to South Africa requested a meeting with Mdladlana to raise concerns about his conduct during an official meeting.
  
"There were certain things discussed and the way in which they were brought up in that meeting, we did not appreciate," Ambassador Tor Christian-Hilda told Sapa recently.
  
Christian-Hilda and two other senior diplomats from the Norwegian mission met Manyi in Pretoria in early March to discuss Norway's cooperation with South Africa's Decent Work programme through the International Labour Organisation.
  
He said black economic empowerment policies were discussed at the meeting, but declined to elaborate further on his reasons for sending a diplomatic note to International Relations and Cooperation Minister Maite Nkoana-Mashabane, from where the matter was passed on to Mdladlana.

- Sapa
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