Recommendation

Response

Status

SAPO should approach the Auditor General for purposes of dealing with the irregular expenditure amounting to R 2 735

SAPO established a Financial Misconduct Committee (FMC) in 2015 and has since its inception led to a significant reduction in irregular expenditure.

This matter was not initially addressed, as the SIU report had not been shared with management in its totality. The FMC will in addition process this irregular expenditure for condonation with the Auditor-General, and also review the SIU Report in its entire in order to identify and strengthen

any control weaknesses

SAPO has submitted a the request for condonation to National Treasury. Further information required by National Treasury was provided including the fact that action was taken against the employees involved. SAPO still awaiting final outcome from National Treasury

The SAPO should approach the Auditor-

General for purposes of

SAPO established a Financial Misconduct

Committee (FMC) in 2015

SAPO has submitted a the request for

condonation to National

dealing with the fruitless and wasteful expenditure amounting to R125 187 961

and has since its inception led to a significant reduction in irregular expenditure. This matter was not initially addressed, as the SIU report had not been shared with management in its totality. The FMC will addition process this irregular expenditure for condonation with the Auditor-General, and also review the SIU Report in its entire in order to identify and strengthen

any control weaknesses

Treasury. Further information required by National Treasury was provided including the fact that action was taken against the employees involved. SAPO still awaiting final outcome from National Treasury.

The SAPO should approach the Auditor- General for purposes of dealing with the fruitless and wasteful expenditure amounting to R15 700 309.84

A submission was prepared and submitted to National Treasury for the condonation of this irregular expenditure.

National Treasury had acknowledged receipt of this application for condonation and requested for additional information is being provided through the

FMC.

SAPO has submitted a the request for condonation to National Treasury. Further information required by National Treasury was provided including the fact that action was taken against the employees involved. SAPO still awaiting final outcome from National Treasury.

The SAPO should engage

the services of

The SAPO engaged

Werkmans Attorneys in

Policies are being

developed on the basis of

appropriate experts who would assist it in the developing policies and/or procedures relating to its relationships with its subsidiaries. These should include all aspects relating to the granting of loans by the SAPO to its subsidiaries

determining the processes and options that should be explored with respect to its relationship with CFG. That opinion is available. The process for the development of a broader set of policies and/or procedures to deal with intra-company transactions has

commenced.

advice from experts and these will be completed in this third quarter.

The SAPO should take the necessary action to create and maintain a register to record the receipt of declaration of interest forms.

A file with all declarations of interest for Board members is kept, and copies of declaration of interests for staff is kept on employee’s personal files. Line managers has ensure completion of declaration forms and HR has commenced the development of a database for all declarations of interests across the organisation.

This should be reflected as complete, the recommendation has been implemented

The SAPO should take the necessary action to recover the placement fee

that was paid to Interim

Placement fee, Interim Consulting – SAPO Legal department assessing the

matter in terms of

Due to the time that it took management to be aware of the

recommendation the

Consulting in respect of the appointment of Mr Jacobs.

conscription and prospects of success.

matter had prescribed. Furthermore actual service was rendered by the employee concerned. There are no reasonable prospects of recovering

these fees.

The SAPO should consider entering into a Memorandum of Understanding or Intergovernmental Protocol with the Department of Home Affairs in order that the SAPO can verify and authenticate the identity numbers of all SAPO employees.

The recruitment policy was reviewed to ensure that all experience and education requirements are reviewed by HCM and the line manager prior to the advertisement being issued. Verifications are part of the interview process. Candidates completed affidavits in the interim to mitigate the risk, where verifications could not be done due to financial constraints. In 2018 as part of the SASSA process all management employees were vetted by State Security Agency. This is an on-going process.

SAPO will be meeting with department of Home Affairs to engage on a

memorandum of

This item should reflect as complete. Not only has SAPO considered the entering into an agreement with DHA, they actually have a working relationship with respect to the issue at hand. A MOU with Home Affairs is in the process of been completed and will be a holistic agreement taking into account all potential aspects for collaboration. That MOU should be concluded and signed by the parties in this third quarter 2019/20 financial year.

understanding in this regard to verify all ID numbers in the system. SAPO and Home Affairs already have an arrangement to verify ID Number and life status of all pensioners. Currently all ID number are verified during the recruitment process.

The SAPO should ensure that properly qualified, skilled and or/experienced staff are appointed in order to ensure that all data regarding the current SAPO immovable property inventory is kept up to date.

The skills required for this function are currently not at the required level as these employees are recruited from within SAPO. The skills development of employees within SAPO is underway and a process has started with the Services SETA to address these critical

skills development needs.

SAPO has appointed Broll Properties to assist in this regard including the transfer of skills. Currently all property inventory is up to date.

The SAPO in respect of the SAPO properties that are at present being leased or occupied by Telkom, take steps to:

After rental and utilities reconciliations Telkom has agreed to pay SAPO R60m.

Further reconciliation is being done to recover

Various engagements have been entered into with Telkom. The reconciliations have been concluded and each party is aware of the obligations

they have in regard to the

• Finalise the reconciliation/audit of all outstanding amounts (including arrear property rates and taxes) due to the SAPO by Telkom and take the necessary action to collect any outstanding amounts in this regard (if

applicable).

outstanding utilities since April 2017 from Telkom which is estimated at R11m.

properties. Therefore this item should be recorded as complete.

In the future ensure that the records pertaining to all rental properties are regularly updated and consolidated.

Signed lease schedules are now being submitted by Telkom and loaded onto the SAPO system for the collection of outstanding and future rentals. Currently SAPO has 29 signed lease Schedules out of the 118 have been received from Telkom and a follow- up meeting is being scheduled to discuss the

outstanding leases.

SAPO has appointed Broll Properties to assist in this regard including the transfer of skills. Currently all property inventory are up to date. This item should therefore be considered complete.