Question NW2052 to the Minister in The Presidency for Women, Youth and Persons with Disabilities

NO

DATE

SOURCE

BRIEF DESCRIPTION OF TIP -OFF

STATUS

AUDIT COMMITTEE STATUS

1

11/10/2013

DELOITTES TIP OFF

EM: ECONOMIC DEVELOPMENT MOONLIGHTING DURING OFFICE HOURS

REPORT ISSUED

REPORT TABLED/APPROVED. THE REPORT RECOMMENDED DISCIPLINARY ACTION AGAINST EMPLOYEE – EMPLOYEE RESIGNED NO DISCIPLINARY ACTION TAKEN

SUMMARY SCHEDULE OF ALLEGATIONS OTHER THEN TIP- OFF REPORTS RECEIVED

NO

DATE

SOURCE

BRIEF DESCRIPTION OF TIP -OFF

STATUS

DECISION /SANCTION APPLIED

1

26/12/2012

NEWSPAPER ARTICLE

MISUSE OF NYDA FUNDS FOR YOUTH DAY CELEBRATIONS HELD IN JUNE 2012

REPORT ISSUED

REPORT CONCLUDED THAT NOT ALL ALLEGATIONS ARE SUBSTANTIATED – RECOMMENDED THAT IMPROVEMENT IN INTERNAL CONTROLS AROUND S&T - IMPLEMENTED BY MANAGEMENT

2

22/07/2013

EAST LONDON BRANCH

FRAUDULENT GROUP LOANS

REPORT ISSUED

REPORT CONCLUDED THAT DISPLINARY ACTION IS TAKEN AGAINST OFFENDING EMPLOYEE – ACTION TAKEN AND EMPLOYEE SANCTIONED AS PER APPROVED DISCIPLINARY PROCEDURE –ALSO IMPROVEMENT IN THE MONITORING OF THE LOANS – CONTROLS INSTITUTED IN THIS REGARD – LEGAL ACTION TAKEN AGAINST TWO PERSONS WHO RECEIVED FRAUDULENT LOANS

3

03/10/2013

GAUTENG - JHB BRANCH

BRIBERY VOUCHER PROGRAMME

REPORT ISSUED

REPORT - BRIBERY NOT PROVEN – IMPROVEMENT IN INTERNAL CONTROLS – ACTIONED BY MANAGEMENT

4

17/10/2013

FINANCE DEPARTMENT

FRAUDULENT PAYMENTS: CREDITORS

REPORT ISSUED

REPORT TABLED/APPROVED. REPORT RECOMMENDED CRIMINAL CHARGES – EMPLOYEE DISMISSED CHARGED AND FOIND GUILTY – RECEIVED JAIL SENTENCE – ALL NYDA LOSSES RECOVERED BY NYDA FROM INSURANCE.

6

20/08/2014

CEO'S OFFICE

THUSANO FUND: VALUE FOR MONEY

REPORT ISSUED

REPORT RECOMMENDED THE SERVICE PROVIDER BE BLACKLISTED FROM SCM DATABASE – IMPROVEMENT IN CONTROLS OF SCM PROCESS AND WAS IMPLEMENTED BVY MANAGEMENT.

8

10/02/2015

CORPORATE SERVICES

BRANCH LOCK-OUTS

REPORT ISSUED

REPORT - RENT NOT PAID ON TIME – RESPONSIBLE EMPLOYEES SANCIONED IN TERMS OF APPROVED DISCIPLINARY PROCESS. IMPROVEMENT IN CONTRACT MANAGEMENT CONTROLS – IMPLEMENTED BY MANAGEMENT

9

12/03/2015

CEO'S OFFICE

PLACEMENT OF UNAUTHORISED DOCUMENTATION AT HEAD OFFICE

REPORT ISSUED

REPORT – UNABLE TO DETEMINE WHO HAD PLACED THE DOCUMENTATION AT H/O

10

11/06/2015

GAUTENG - JHB BRANCH

BRIBE SOLICITED FROM A CLIENT APPLYING FOR A GRANT AT BRANCH

REPORT ISSUED

REPORT – UNABLE TO PROVE THAT A BRIBE WAS SOLICITED BY THE IMPLICATED EMPLOYEE

11

26/06/2015

ECONOMIC DEVELOPMENT DEPARTMENT

PROPER SCM PROCESS NOT FOLLOWED IN SOLICITING SERVICE PROVIDERS FOR CATERING SERVICES

REPORT ISSUED

REPORT – PROPER PROCESS NOT FOLLOWED – IMPLICATED EMPLOYEES SANCTIONED IN TERMS OF APPROVED DISCIPLINARY PROCESS

No.

Nature of Allegation

Amount Involved

Identity of Perpetrator(s) known

Investigation Finding(s)

Decision / Sanction Applied

1.

Facebook Adverse Allegation

None

Yes

• Report issued.

• Letter of Apology received from the Complainant to close the case.

• Case Closed.

2.

JHB Branch – Alleged Corruption / Bribery

None

Yes

• Assessment results indicates that there is no case.

• No Case.

3.

Alleged Tender Fraud (Dispute on Declined Voucher Programme Tender)

None

Yes

• Assessment results indicates that there is no case.

• No Case.

4.

Fraudulent transaction conducted with Conferencing Centre

None

Yes

• Assessment results indicates that there is no case.

• No Case.

5.

Alleged Unethical Behaviour for Declined Grant Application of S Maile

None

Yes

• Report issued.

• Case Closed.

No.

Name & Nature (subject matter) of Allegation

Date of Allegation

Amount Involved

Identity of Perpetrator(s)

Investigation Finding(s)

Decision / Sanction Applied

Conclusion of the Forensic Report or Assessment Report

1.

Irregularities and suspected corruption pertaining to the SEED (School Entrepreneurship Education Division) Programme being funded by NYDA, at Karabo Business Consortium, Karabo Training College, situated at 43 Ockers Street, 3rd Floor United Building, Krugersdorp.

25-May-2017

None

Not yet known

The Agency have no information regarding this query and service provider.

No Case

No Case.

2.

Suspected Corruption at JHB Branch Voucher Programme Service Provider

REF: OBB514092017

14 SEPTEMBER 2017

Not disclosed

Yes

Request for name change from Mendi to Digi Effect.

1.1 The request received for Mendi name change to Digi Effect nullified the existence of the agreement between the Agency and Mendi Consulting Services. The above statement is supported by reviewing the records of the new name company:

1.1.1 The new company, Digi Effect was registered in 2015, it is not a new company which can proof that only the Name Change was effected on the registration documents.

1.1.2 The company registration and Income Tax numbers are different.

1.1.3 Lumka is not part of the directors of Digi Effects.

1.1.4 The directors of Digi Effect are not in the Mendi Consulting company registration document.

Therefore, management should urgently liaise with Mendi Consulting in respect of intention to terminate the contract.

1.2 As the Agency is in a process of terminating Mendi Consulting Services contract, we recommend that all the clients that are allocated vouchers via Mendi Consulting Services be reassigned to the next Service Provider(s) to who they are currently contracted to the Agency and approved to deliver that specific type of voucher. The progress of young people businesses is delaying due to such long outstanding issue.

2.3 Furthermore, as the name change dispute continued and non-release of payments by the Agency. The client’s websites and emails were disconnected on 31 March 2017 due to unpaid vouchers by the Agency. Client were requested by Mendi if they would like to arrange a payment plan to keep their website and emails running to kindly contact Nicolus on 078 786 1318 or reply to his email address.

• Contract with Mendi terminated.

• Mendi’s clients reallocated to another approved Service Providers.  

3.

Not disclosed

Yes

We could not find substantive evidence that Mr Steven Curry, accept bribes in return for securing grants for grant applicants.

The caller seems to be one of the grant applicant that his/her grant was rejected. The Branch issue grant declined letters communication the reasons for such declined to each unsuccessful applicant for rectification of the application.

No Case

4.

None

Yes – Bulelwa Case and she resigned.

Case open with SAPS and the lost amount recovered from the Insurance.

Case open with SAPS and the lost amount recovered from the Insurance

Case open with SAPS and the lost amount recovered from the Insurance. Same case as below.

No.

Name & Nature (subject matter) of Allegation

Date of Allegation

Amount Involved

Identity of Perpetrator(s)

Investigation Finding(s)

Decision / Sanction Applied

Conclusion of the Forensic Report or Assessment Report

1.

Report sent to selected recipient(s) by the Hot-line Service Provider as per contractual agreement.

REF: OBD215042018

12/04/2018

Not applicable

Not applicable

No Case

No Case

No Case.

2.

NYDA, situated in Woodmead, Johannesburg.

The caller reported irregularities at the aforementioned Branch, with regard to the 2017 projects that were not yet implemented

04/05/2018

Not disclosed

Yes – Bulelwa Case and she resigned.

Case open with SAPS and the lost amount recovered from the Insurance.

Case open with SAPS and the lost amount recovered from the Insurance

Case open with SAPS and the lost amount recovered from the Insurance. Same case as below.

3.

NYDA for a project in Mpumalanga.

The caller reported that a company known as Letlotlo, had been awarded funding of R1 million for a project to excavate tunnels in Mpumalanga. The caller stated that the funding had been paid to Letlotlo in December 2017; However, to date the project had not commenced.

17/05/2018

+ R1 million

Yes – Bulelwa Case and she resigned.

Case open with SAPS and the lost amount recovered from the Insurance

Case open with SAPS and the lost amount recovered from the Insurance

Case open with SAPS and the lost amount recovered from the Insurance. Same case as above.

4.

Not disclosed

Yes

Client complained due to dissatisfaction of service delivery.

The client was provided with a Grant of R49 900 (R1 900 for working capital & R48 000 for mobile kitchen). He also wanted a branding voucher for his mobile kitchen and there was moratorium on branding to date. They advised him to do the business plan voucher and it was approved. Suddenly, he changes his mind that he doesn’t want the business plan voucher and the Branch wrongly advise him for a mobile kitchen business as he wanted Polish Manufacturing. The Branch mentioned to him that they will only fund the polish business if its SABS approved for safety reasons.

No fraud – Matter with the CEO and Audit Committee directed the CEO to discuss and convey the message to the client on 05/03/2018.

• The grant is already close to the limit of R50 000 as only R100 short to reach R50 000. It is not possible for the Branch to issue a second grant as his business is not operating successfully.

• An exception for the Branch prerogative to do a second application for him in case of additional working capital would have been exercised as he only received R1 900 for the working capital to a maximum of R5 000 (R3 100.00 would have been approved if the ceiling of R50 000 grant was not yet reached).

5.

None

Yes

The Maponya Branch operating hours is 8:00 am to 5pm but the centre operating hours is 8:30 am to 16:30 which needed to abide with. The staff (team) arrive at 7:00 am and the last client leaves at 6pm.

Assistance is provided to applicants to complete one client on the system it takes about 20 minutes.  When assisting the one who forgot the system password can take 30 to an hour.

Service delivery issue and was referred to the Call Centre for conclusion and assistance thereof.

No.

Complain Description

Date received

Reference no.

Investigation

Conclusion

1

Tender fraud - lease building - Secunda

Alleged tender fraud involving the contractor, Tribugenix PTY (Ltd), to the National Youth Development Agency, situated in the Secunda.

13-May-19

OBE312052019

1. The successful bidder does not have a BBE certificate. However, the bidder submitted a letter which states the summary of the entity's contributions that is supported by the South Africa Police Services (SAPS) Affidavit dated 18 January 2018 from Garsfontein Station in Pretoria.
2. The request for Tender specification document did not request submission of references for clients and bank ratings for the tender process as purported by the Complainant.

There is no indication of tender irregularities. The submitted affidavit is acceptable by the laws of the Republic.

2

Tweeling District Office Recruitment Irregularities

Appointment of staff without following HR Recruitment & Selection policies. Appointment of that that is closed to prominent members of the ANC including the Premier and Councillor.

21-May-19

OBC520052019 & NYDAOBA242072019

1. During the time of the complaints, Ms Monaune was having a valid work contract with the Agency as a Frontline Consultant for a period of 5 months ending 30 September 2019.
2. John Mazibuko – 2nd Complainant (applied for both positions - Frontline Consultant & Center Administrator) written on the application for and his CV that he got BBA Degree in Project Management. However, there is no proof or evidence of such a degree in his application supporting documents.

1. Sufficient evidence exists to confirm that the recruitment and selection process for the positions was followed fair and transparent.

2. There is no evidence to demonstrate existence of any political interference during the selection and recruitment process / appointment process.

3

Irregularities and corruption – Mbombela Grant Programme

1. There are irregularities and corruption committed by the NYDA Mbombela Branch employee Ms Lucretia Ndlovu.
2. Ms Ndlovu has assisted the business owner Mr Anthony Sibuyi with the process of obtaining the funds to open an eatery and internet café business from NYDA, irrespective of Mr Anthony Sibiyi age which is currently 45 years of age at the time of the application of the fund.
3. Ms Ndlovu has assisted Mr Anthony Sibiyi to fraudulently utilise his younger brother by the name of Mr Sicelo Jeffrey (Patrick) Sibuyi as the face of Mahlakule Enterprises in order to qualify for the funding. (However, the Caller did not provide the age of Mr Sicelo Jeffrey (Patrick) Sibuyi but advised that he is within the prescribed age to meet the requirements of the Agency.
4. Ms Ndlovu has been involved in a in a romantic relationship with Mr Anthony Sibiyi since December 2017 and the community is aware.

04-Jun-19

OBD51062019 & OBD592062019

1. Sufficient evidence exists to confirm that the Client (Mr. Sicelo Jeffrey (Patrick) Sibiya) instructed the supplier whom the Agency initially paid to directly refund him the money. He did not collect any goods and services for which they had been paid for. It is established that fraud did take place, the Agency should institute the required sanctions as prescribed by Public Finance Management Act (PFMA) regulation on financial misconduct (i.e. commence civil recovery proceedings and criminal proceedings).

1. The matter should be immediately handed over to NYDA Legal team for further action as required by the Grant Policy section 26.3 that “the Grantee should be compel to repay the full grant, and section 26.3.1 that “the Grantee will not benefit from services of the Agency in future”.

2. Furthermore, the Agency’s employee Ms. Lucricia Ndhlovu is not directly involved or responsible for managing and administrating the grants. She is also no holding an influential role or senior role within the Branch to influence positive approval of the grant. There is no evidence that she could not have colluded with the client to defraud the Agency by fast tracking the payment of the grant.

4

Fraud and Corruption at Empangeni Branch

Mabika Clan (Pty) Ltd is a sewing and embroidery company operating at Esikhawini. The business applied for R50 000 grant at NYDA and when doing follow-up on the application Thwala and Nkululeko (Branch Manager) confirmed that they lost all my documents. I heard a rumor on my lecturer saying Mabika Clan was also on the list of beneficiaries on Sihle Zikalala presentation meeting. Then I went to NYDA in Durban they also confirmed that Mabika Clan is one of the beneficiaries at NYDA.

I hope my case will be taken seriously or I will try to find alternative ways to deal with the matter.

Jun 13 & 18, 2019

OBA170062019

1. Branch Manager respond - In response to this email. I know Mr Mabika he is our client as he came to our branch to do an assessment for a grant application.
2. As Empangeni branch we have not granted anyone by the surname Mabika we only did an assessment which was meant to be followed by a site visit.
3. Apologies for any confusions probably the Premier was referring to another Mabika from another Branch.

No case - only speculation

5

Madludlas Agricultural Enterprise

Supplier requesting the Agency to provide him with the contact details of the Agenys' former beneficiary. The beneficiary failed to paid the supplier for goods delivered or service rendered.

11-Jul-19

OBA139072019

1. There are no records of Madludlas Agricultural Enterprise (Pty) Ltd or & Madludlas Agricultural Enterprise.
2. Mbuso Nxumalo is in our Customer Relationship Management (CRM) system under enquiries. He was captured in 2013. The contact details we have is 076 036 3010.

It is the Agency management prerogative to provide the Third Party with contact details of the Agency’s clients.

6

Nsfas ProblemQuery from our fraud hot-line regarding a student that applied for funding at our Branch and to date he did not receive feedback. Details are as follow:Name: Baleni SibusisoID: 000 212 567 108 7Bar Code: 152 674 43

22-Jul-19

OBA19062019 & NYDAOBA254072019

Email from Operations Unit - Working with NSFAS during application process , our mandate was to help them with applications only - Then send the applications to NSFAS for reviewing and awarding - NSFAS does not tell us who they have awarded or who they did not- We don’t get in anywhere in awarding of NSFAS students, that’s purely done by NSFAS only- Our role was just to assist with the applications only, and those applications were send to NSFAS- If this applicant has queries he must contact the NSFAS and again- Student applying for NSFAS does not automatically mean that the student will get the funding I have just checked now we don’t anyone by the name of Nyangiwe in the NYDA, and even those graduates that were hired to do NSFAS applications there is no Nyangiwe, maybe this Nyangiwe belongs to NSFAS because we used to have NSFAS people vising our branches as well during the application process.

Email was forwarded to NSFAS to check their records on 26 July 2019 and they have requested the Client to contact them directly of which he did upon our advice.

7

IRREGULARITIES - in Polokwane Branch. The Caller stated that the 5 Co-operatives had complained that they had not received everything as per the quotations they had provided to Ms Maepa and indicated that “the individual who was supposed to cut the bushes had arrived. However, had not cut the bushes and nothing had been done; they had received smaller size uniforms than requested and had only received a part of the fencing as well as only received part of the seedlings”. The Caller further mentioned that the 5 co-operatives had produced their own quotations; however believed that Ms Maepa had submitted entirely different quotations. The caller had been uncertain where the quotations could be obtained.

21-Aug-19

OBB585082019

1 Based on the preliminary investigation, there is evidence for a potential collusive relationship between the NYDA Official and the Suppliers.
2. The matter should be immediately handed over to NYDA Legal team to start the process of recovering money for outstanding items.
3. We have requested the Branch Coordinator to return to the Clients so that a full stock take is done for delivered items and quantity there off. Such a stock take will assist that the Coops initial grant is top-up so that they carry on with ploughing. The reason for top-up of the grant is because members of the Coops will start selling the items or using the items for their personal gain which will defeat the purpose for the approval of the grant.

1. There is evidence for a potential negligence of work by Ms Maepa towards assisting the clients to get all items from the Suppliers. The Suppliers did not deliver all the quoted items.
2. The matter was immediately handed over to NYDA Legal team on 22 January 2020 to start the process of recovering money for outstanding items.
3. We have also requested the Branch Manager that the Branch Coordinator should return to the Clients so that a full stock take is performed for delivered items and quantities there off. Such a stock take will assist that the Coops initial grant is may be top-up so that they carry on with ploughing. The reason for top-up of the grant is because members of the Coops will start selling the items or using the items for their personal gain which will defeat the purpose in which the grant was approved for.
4. Consequence Management should also be taken against Ms. Ms Maepa for neglecting her duties towards the Clients, by not ensuring that the Suppliers deliver all items as per quotations.

8

Online Report Received - OR2531092019 - Incentiv8 (Pty) Ltd Enterprise number K2017029322 www.incentiv8.co.za - A possible ponzi scheme is occuring. Incentiv8 is offering students a rate of return of up to 200%. This return is not payable earlier than 6 months. Students pay a monthly premium to the company and then upon graduating from their degree they receive a lump sum that totals more than their initial premiums. This lump sum offers returns from 40% up to 200%. Believed to be a ponzi scheme due to high rate of return and the fact that the company is using non-claiming students’ premiums to pay out lump sums to students that are gradating. This is unsustainable and many people will lose money.

11-Sep-19

OR2531092019

In terms of preliminary investigation, the matter is not within NYDA scope of work / duties as the organisation. Refer the matter to high education institutions, i.e. Department of Education and National Student Financial Aid Scheme (NSFAS).

In terms of preliminary investigation, the matter is not within NYDA scope of work / duties as the organisation. Refer the matter to high education institutions, i.e. Department of Education and National Student Financial Aid Scheme (NSFAS).

9

Re: Suspicious Activity at NYDA - INTERNAL REPORT - In February of 2019, I started the process of applying for a grant from the NYDA offices in Pretoria. Since then I have called in to the gentlemen and exchanged texts to which many things have been said. I was even sent through a proof of payment to my phone to let me know my supplier was paid then it was quickly retracted as I was told it was another company that had used the same supplier which had been paid out. I then asked how they knew and to which I received no response. I have also tried to contact other people from the branch who then emailed me the exact same Proof of payment i had received from the gentlemen, to which it was then said again that it was not my payment but that of another client that had been made.

11-Sep-19

OBA113092019

This is a customer service delivery complain and that PTA Grant Officials direct Clients to their preferred suppliers. Client are not provided with an opportunity to present their preferred supplier quotations. Client are also directed which to specific items they can buy on those suppliers.

Case closed. Internal Audit assisted a client that the grant is finally paid to her at the end of October 2019.

10

Elias Motsoaledi Local Municipality and NYDA Internship Programme
. The Whistle-blower reported that irregularities are taking place within the Infrastructure Department, regarding Tshepiso (no surname provided), in charge of the NYDA Apprenticeship Programme, for unethical conduct regarding him displaying favouritism towards certain applicants based on ethnicity.
. The complainant is alleging that there are 19 students in the apprenticeship and all of them do not have Diesel Mechanic Qualifications.
. The complainant further state that all these 19 students paid a Lecture in Gauteng for N2 Certificates, and they only go to sign the attendance register.

11-Nov-19

OR2670112019






 

i. There is sufficient evidence that the Apprenticeship Beneficiaries have the required qualification in terms of the advert.
ii. The recruitment process was transparent to all involved Stakeholders, hence all the Stakeholders form part of the Panel that interviewed the Candidates.
iii. There is a greater amount of evidence to counter the allegation of the complaint. Therefore, the allegation in terms of the compliant are not true. It is an abuse of the available mechanism of reporting to settle internal score within the Municipality.
iv. There is no direct evidence linking any of NYDA Officials to have committed misconduct as far as this Apprenticeship programme is concern, including NYDA Official.
v. In terms of the statement acquired from Apprenticeship beneficiary they indicate that believe that they are a part of the this programme, hence they have all the required qualification in terms of the Advert.

Case closed, no further action need as per investigation report.

11

FRAUD - Solomon Mahlangu Scholarship Fund
• The complainant indicated that Mr Vuyo Wallance submitted incorrect details of the Landlord information to the Interllimali System.
• The complainant indicated that Mr Vuyo Wallance used the details of his unknown relative as if it is his Landlord.
• The complainant/Caller indicated that the Landlord where Mr Vuyo Wallance is actual resides details were not submitted to the Interllimali system, and that they have not received any rental for the whole year 2019 hence Mr Vuyo Wallance indicated that he does not have a Bursary.

21-Jan-20

OBE1302101202

In process of Investigation as the case is new.

There is sufficient proof to substantiate the allegation that Vuyo Wallance colluded with her Sister Ms Nomfundo Mdluli to misrepresent the Agency that his Sister pose as a Landlord. This assertion is supported by the following:

1. Reason for Contract Termination 1 - Fraud committed - The evidence shows that the conduct of the Student amount to concealment of facts by submitting his Sister banking details – its Misrepresentation - which lead to broken trust between him and the Agency.

2. Reason for Contract Termination 2 – Period / duration of funding lapsed - The Scholarship Conditions as per Standard Scholarship Fund Agreement - Section A(1) states that “The Scholarship will be awarded for the duration of study only for full-time study and may in the sole discretion of NYDA be renewed for the subsequent year/s. The Agency funded the student for a period of 4 years and now it will be the 5th year for a 3 to 4-year Undergraduate Degree. Perpetual funding is prohibited by the conditions of the Scholarship. If the Agency fund him again, that is viewed as a perpetual funding.