Protector targets suspected fraud at AgriSeta

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The public protector is in the process of finalising a report relating to allegations of maladministration, corruption, financial mismanagement and abuse of power at the AgriSeta.

Some board members including acting chairman Thami ka Plaatjie and CEO Jerry Madiba, were implicated for allegedly submitting fraudulent claims, allocating discretionary funds for gala dinners without board approval and fictitious deviations for transactions to cover up illegal transactions.

Ka Plaatjie and Madiba did not return calls for comment.

Setas have previously been criticised for inefficiency, being a haven for corruption and for enrolling ghost students. They have come under fire for failing to tackle SA's skills deficit.

Others - such as the Culture, Arts, Tourism, Hospitality and Sport Seta and the Safety and Security Services Seta - have been under administration for reasons including poor governance and noncompliance with the Public Finance Management Act (PFMA).

Public Protector Busisiwe Mkhwebane recently wrote to the AgriSeta board, detailing some of the allegations, which also include: the submission of fraudulent claims by members of the Food and Allied Workers Union, payment of former board members despite them no longer occupying their posts and the extension of an internal audit contract by the CEO without board approval, thereby contravening the PFMA.

Public protector spokesman Oupa Segalwe said the report was almost done and that the responses of interested parties and those implicated had been incorporated. "The report is now being quality-assured. It could be ready for release next month," said Segalwe.

An Outsourced Risk and Compliance Assessment forensic report was also submitted to the board in March. The report exposes transgressions regarding tender awards, recruitment processes, staff intimidation, irregular payments and misrepresentation to the board.

Furthermore, the AgriSeta's quarterly monitoring report showed that the authority was seriously underperforming and that it had achieved only 66% of its targets as set out in a service level agreement for 2016-17.

The Department of Higher Education and Training could not be reached for comment. However, in a letter sent to the Seta board in March, the department expressed concern about the Seta's performance and demanded an action plan indicating how the situation would be improved.

Agri SA deputy executive director Christo van der Rheede, who was recently appointed as a board member for the AgriSeta, said this week it was clear there was a governance and management crisis at the Seta.

"We cannot allow public money to go to waste. This Seta is meant to empower workers and farmers - if such institutions are not performing then we have a huge problem."

Source: Business Day