Millions wasted in traffic management

2010-07-29 03:15

Pretoria - The Road Traffic Management Corporation (RTMC) wasted millions of rands in mismanagement, irregular procurement and over-expenditure, among others, Transport Minister Sibusiso Ndebele said on Thursday.

Ndebele told journalists one of the key findings of an investigation into allegations of mismanagement at the RTMC was an irregular lease agreement of R658m over 10 years, which resulted in an actual loss of R11m.

"According to the task team, the total value of confirmed irregular expenditure actually incurred at the RTMC is currently estimated at R144m,  said Ndebele.

The task team was appointed on February 8 to investigate allegations of mismanagement, as well as issues relating to leadership, governance, business and finance at the RTMC under former CEO Ranthoko Rakgoale.

"Mr Rakgoale was subsequently suspended and Mr Collins Letsoalo, deputy director general: financial services at the department of transport, was appointed acting CEO," said Ndebele.

Riah Phiyega, former group executive for Absa Group [JSE:ASA] and Transnet who chaired the task team, outlined the report, saying allegations included that eNaTIS transaction fees were used to fund over-expenditure, irregular purchases of IT "infrastructure" (R11m) and an accident reporting system (R85m over a two-year period).

The project was stopped which resulted in a confirmed loss of R65m.

It was also alleged there had been irregular contracting of suppliers for an IT help desk and internet management system at R9m.

The team confirmed R300m of the eNaTIS fees were used to fund over-expenditure.

"This money was not stolen. The findings relate to not following directives to transfer money to the department of transport (DOT), and knowingly using dedicated resources inappropriately," says Phiyega in the report.

Irregular spending

The report also confirmed irregular spending of R9m on the hosting of an international conference in Cape Town, substantially in excess of the budget, which was considered fruitless and wasteful expenditure.

Other findings included the unauthorised expenditure of R1.4m as well as VAT abuses, and R13.3m spent on unnecessary financial management services.

It also partially confirmed the irregular contracting of suppliers, to the value of R3m, for the evaluation of Electronic Vehicle Identification technology of which the deliverables were questionable, and the awarding of a bid of R34m for an Enterprise Resource Planning system which was inappropriate for an organisation the size of the RTMC.

The report, which was handed to Ndebele on Tuesday, made several corrective recommendations, which included a review of the RTMC Act and steps to be taken to rectify a funding shortfall in the organisation.

Letsoalo said besides Rakgoale, two other employees were suspended who were linked to these problems, while another had been suspended for a separate matter.

Ndebele said criminal and civil cases would be instituted against guilty employees and suppliers of the RTMC.

"Those found guilty of such offences are liable on conviction to a fine, dismissal or imprisonment," he said.

He would not say how many employees were involved, however, as disciplinary proceedings still had to take place.

In the report Phiyega said civil action may be taken against suppliers to recoup losses, but no court papers, civil or criminal, had been filed yet.

  - Sapa

  • Abe Ramsay - 2010-07-29 11:25

    If money was spent the way it was intended we would not need toll roads.

  • cassuis - 2010-07-29 11:30

    so? what seems to be the problem? it's social upliftment- the disbursment of funds so to speak!! none of this news, of course of government is goin to crack down on corruption> my joke for the day.

  • Not surprised - 2010-07-29 11:37

    Say it ain't so?!

  • vlakkie - 2010-07-29 11:45

    Someone also need to have a look at the ridiculously close spacing of the light masts on the R21. The total lenght of light masts are in fact longer than the road !!!

  • Sipho - 2010-07-29 11:50


  • taxpayer - 2010-07-29 11:51

    No surprise, just another part of the pandemic culture of theft and corruption, the national policy of the ANC

  • michael - 2010-07-29 11:52

    mr Ranthoko Rakgoale was temporarily suspended on full pay, and will be sueing RTMC for a Golden Handshake why do we pay taxes again? oh yes.. to fund the clowns...

  • bok4life - 2010-07-29 11:58

    HAHAHAHA!!!! Is anyone really surprised!! When you get the job just because of certain laws in SA not because of merit! Well here you go a perfect example! They should also have a look and see who the contract or lease agreements were handed to, im willing toi bet they are friends or family!

  • JC - 2010-07-29 12:00

    I am so tired of hearing about the corruption of the cadres, I can throw up. Can anyone tell me if there IS actually a single department of the government, or any of the parastatals, that has managed to successfully pass its annual audit, and is by some miracle actually functioning correctly? Or is this going to be like looking for an honest man in Sodom and Gomorrah?

  • Shrek - 2010-07-29 12:02

    And this is why we have people still living in shacks, without water, electricty, sanitation tec.

  • erewhon - 2010-07-29 12:06

    We are of course going to see proper prosecutions and should the miscreants be found guilty, proper punishments. Right? Right!

  • jenny - 2010-07-29 12:08

    I also want to be suspended so I can sit at home on full pay. He should submit bills for time he is suspended and if found guilty, he must repay those bills and of course pay a fine.

  • Huh ? - 2010-07-29 12:19

    Transport Minister Sibusiso Ndebele. You are useless ! So much mis management in your department, perhaps you should step aside and let someone capable take over, what do you think ? All you can do is report on mismanagement of funds (rofl)

  • @erewhon - 2010-07-29 12:22

    dont kid yourself...he will probably get promoted !!!

  • DeonL@timeismoney! - 2010-07-29 12:24

    It took nearly 6 months for the investigation, the SAA investigations took more than a year, why does it take so long?

  • Michael Boweery - 2010-07-29 12:30

    Minister Ndebele: We the public are so tired of seeing every department in government, provincial and municipal being tarnished with the label of mismanagement, corruption and illegality and at the end of the day once uncovered, nothing happens to redress the situation. They are either moved on to something else but NEVER end up convicted and gaoled. Therefore the ANC are seen as a totally corrupt govenment who when it's revealed actually do nothing and everything goes on as before. Its not bad government it's disgusting. I once as a detective warrant officer investigated and prosecuted corruption, extortion and bribery within the Department of Transport. I gaoled half a department. The difference was it was a National Party Government and white officials and in the Apartheid era. What a difference! Michael Bowery

  • Katushi - 2010-07-29 12:32

    Who on earth is the RTMC & what do they do, apart from sitting at home doing nothing?

  • justin - 2010-07-29 12:38

    how many times do we read these headlines of mismanagement. the guilty are never brought to book. its just another form of black empowerement.

  • martin albert - 2010-07-29 12:46

    The stupid question is - Is Previn Gordhan ever going to use the Public Finance Management Act to recover or convict the hundreds of crooked ANC deployed cadre caught? Or is this act just for quoting????

  • e - 2010-07-29 12:46

    vlakkie, the SANS spec is there for a reason. no lighting is better than bad lighting; its a fact

  • Net - 2010-07-29 12:50

    Sounds about right

  • Lone Ranger - 2010-07-29 13:03

    So THAT'S why there is suddenly such an abundance of traffic checks and speed traps along our highways - they need to recoup the lost millions from traffic fines! Lovely!

  • Amanda - 2010-07-29 13:04

    In the name of all the people who SUFFFFFFER in this country - how can we stop this?! The people who pay their taxes and the poor that just suffer more and more are fed up of this! ANC please please wake up and get people who are competent and honest for a change.

  • GT - 2010-07-29 13:29

    Imagine a slot machine in your house paying out R1 every second for 32 years... that how much R1,000,000,000 (BILLION)is. It is an insane amount of money, which sadly very few people can grasp

  • Tired and Poor - 2010-07-29 13:43

    The CEO will be suspended on full pay for 2 years during the investigation, retain his black BMW 750i and blue lights, security guards, receive an insentive bonus, and be found not guilty and promoted! Please remember that this is ANC, cadre, comrade, BEE, AA, nepotism territory! So sit up straight and pay your taxes! Viva ANC, Viva! They base their values on communism: "All people are equal, but some people are more equal than others".

  • Fair Deal - 2010-07-29 13:45

    Who can blame the workers for striking for better wages when they see the Government officials missapropriating millions of rands and nothing is done to curb this practise ,ineficiency and nepotism is rife. If the workers are paid a better wage at least this will benefit the economy. So let the imbalance of wages begin by example, instesd of just benefiting an elite group.

  • TMF - 2010-07-29 13:46

    I'm one of those that is completely tired of this corrupt government. If asked what dries me to consider immigration, corruption is now #1 above crime for me. @vlakkie. With 4 lanes of traffic, the more light the better. Imaging how blinded you will be by headlights if there was no ambient light.

  • DM - 2010-07-29 13:58

    Just another expensive side empire going south. There used to be a workable and relatively cheep way of doing what RTMC is attempting to re-invent. Makes you wonder if they have any right to exist at all!!

  • Craig Lowe - 2010-07-29 14:04

    As I understand it, should any person aide or help a criminal in any way that person is as guilty as the person commiting the crime, therefore, all tax payers are as guilty of crime as it is our money they use and abuse outside the ambit of the law

  • Gavin - 2010-07-29 14:09

    Are there ANY honest people employed in this wonderful government of ours ? Aren't you tired of reading about people stealing and 'mismanaging' funds ? Have you no pride ??????????????????

  • JK Whittaker - 2010-07-29 14:17

    R144 million would fix alot of potholes haha

  • Ryan - 2010-07-29 14:33

    I would like to know what happened to the SANRAL project where cameras were installed all the way down the N1 highway in Joburg. It was supposed to be used to police the highway. Was one fine ever issued? Did it ever work and where are the cameras after they took them all down less than a year after they were installed to do the current road upgrade system? News24, do you want to investigate for us please?

  • 4SA - 2010-07-29 14:49

    BEE in reverse. When you get corruption created by so many previously disadvantaged individuals is there any wonder why the public like to have CEO’s who can do the job for them. The whites that are being trained get results which makes jobs and the man in the street is empowered. The best black empowerment deal is to put competent honest people at the controls then we will put more in the hands and mouths’ of all in SA.

  • "transformation" - 2010-07-29 15:47

    this country keeps going more and more blackwards i mean backwards - never has there been more corruption and crime - there is no future in this country if you white

  • Corruption - 2010-07-29 16:34

    Corruption is part of the perfomance aggrement for the ANC people.

  • Investor - 2010-07-29 16:35

    Well done for exposing this inefficiency Transport Minister Sibusiso Ndebele. You get my Vote !!!

  • koos - 2010-09-29 13:32

    what did us expect..? government = corruption period

  • Anom - 2010-11-16 17:16

    What!!!??? No fanboi comments to the rescue from ANC supporters on this one? Shocking...

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