Pretoria - Science and Technology Minister Derek Hanekom has dismissed the CEO of the Technology Innovation Agency (TIA), Simphiwe Duma, following damning findings uncovered by accounting firm, Deloitte and Touché.
Briefing reporters on the Deloitte forensic investigation report on Tuesday, Minister Hanekom said the report was considered and accepted by the TIA Board at its meeting on March 26.
“They then recommended to me that the CEO (Duma) be dismissed and I concurred with this recommendation. In terms of the TIA Act, the CEO is appointed by the Minister of Science and Technology upon recommendation of the Board.
“In accordance with this responsibility, it is with regret that I have to announce that Simphiwe Duma was dismissed from the Agency with effect from March 31, 2014,” he said.
As a direct consequence of these investigations, the services of the Chief Financial Officer of TIA, Barbara Kortjass, have also been terminated by the TIA Board.
Deloitte was appointed by the Board in July 2013 to investigate allegations pertaining to nepotism, intimidation of external auditors KPMG, irregular investment transactions, procurement of goods and services as well as Duma’s expenses.
The audit firm handed its draft report to the Board in October last year. Having considered the report, the Board informed the Minister, who also concurred that Duma, Kortjass and four other staff members be put on suspension on October 17.
Nepotism allegations were raised against Duma when he appointed his former wife, only known as Matjila, as General Manager: Marketing and Branding without following due processes.
In March 2010, Matjila applied for both the positions of General Manager: Strategic Partnerships and General Manager: Marketing and Communications.
The interview panel rated Matjila as the preferred candidate for the position of General Manager: Strategic Partnerships, but another candidate was appointed to the same position.
After splitting the Communications and Marketing portfolios to form a Marketing and Branding Division, the agency then appointed Matjila in June 2010 as marketing manager.
In December, she applied for the internally advertised position of General Manager: Marketing and Branding.
The agency did not follow any interview processes as required by its recruitment policy when appointing Matjila in January 2011.
The forensic investigation recommended that the Board should consider instituting disciplinary action against Duma for signing an employment contract with his former wife without adhering to the recruitment policy.
Duma is also fingered for allegedly appointing his sister-in-law, Pontsho Maruping, as the Group Executive: Industrial sectors without following due processes. However, the forensic investigation report indicates that due processes were followed and that there was no substance to the allegation that Maruping is related to Duma.
The report also cleared Duma on the allegation of threatening KPMG (the external auditors of the agency) with the termination of its services if certain findings were raised.
Minister Hanekom said five staff members were subjected to formal disciplinary processes and one to an internal disciplinary process. Three staff members were handed appropriate sanctions and are all back in their positions at the agency.
However, he said one staff member was still undergoing the disciplinary process.
Minister Hanekom said the finalisation of the disciplinary processes against Duma, Kortjass and other staff members concluded a rather difficult and unfortunate chapter in the history of the agency.
Interim leadership
The minister said the Board appointed Mkhululi Mazibuko, the agency’s Chief Operating Officer as the acting CEO, and Werner van der Merwe has been appointed as acting CFO.
“The focus now will be on the recruitment of a suitably skilled and qualified individual, who will add to the strength of the agency’s Board and ensure that the day-to-day operations of the agency are conducted competently, with honesty and integrity.
“The Board has indicated that it would be discussing with me its recommendations regarding the leadership of the agency during the intervening period leading to the appointment of a permanent CEO and CFO,” he said.
Minister Hanekom said the announcement regarding the appointment of both CEO and CFO will be made in due course. - SAnews.gov.za
