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Johannesburg - An investigation of the SA Post Office (Sapo)
has uncovered fruitless, wasteful and irregular expenditure involving hundreds
of millions of rand, the Sapo board said on Monday.
The investigation involved the relocation of Sapo's head
office from Pretoria to Eco Point in Centurion, board chairperson Vuyo Mahlati
told media in Johannesburg.
It was found that irregular expenditure of R425m and
fruitless and wasteful expenditure of R19m had occurred.
Mahlati said a process to recover the R19m had started, as
well as efforts to "determine liability of individuals".
The irregular expenditure was, however, not found to be
unlawful, but included "company procurement policy breaches".
This involved rental prior to the occupation of the
building, as well as breaches of company policy by executive directors and
senior managers.
The investigation was in line with the Public Finance
Management Act (PFMA), and was launched following complaints from employees at
Sapo over the new head office.
"The board has engaged with the minister of communications throughout the last 16 months. Critical meetings were also held with leadership of the Communication Workers Union," Mahlati said.
