Question NW701 to the Minister of Tourism

Reply:

(1) Whether she will initiate a thorough investigation into the alleged misconduct of the Director-General (DG); if not, why not; if so, on what date;

On 27 August 2024, the Deputy Minister of Tourism, Ms Maggie Sotyu, replied to the Portfolio Committee meeting, where we were all present, about the allegations against the Director General. The Deputy Minister noted that I had assigned her to investigate the matter, starting from documents dating back to 2016. She met with the former Tourism Minister Kubayi, who provided background information on the case.

I noted that the allegations about the Director General were reported to the two previous Ministers. The Directors General are directly accountable to the President. As the Minister, I must report such allegations to the President – which she has done. The President decides whether the Presidency will investigate the allegations or whether the President will delegate his powers to the Minister. I am awaiting a response from the President.

(2) Noting that the DG has claimed that he was investigating several cases of fruitless and wasteful expenditure amounting to R100 million,

I am informed by the Director-General that he launched an investigation into fruitless and wasteful expenditures amounting to R104 million, as initially found by the Auditor General of South Africa (AGSA). The investigation was conducted by SNG Grant Thornton and concluded in 2020.

(a) What are the full, relevant details of the

(i) investigation, and

The purpose was to conduct a forensic investigation in relation to projects that the Auditor-General South Africa (AGSA) identified as fruitless, wasteful and irregular expenditures.

(ii) outcomes thereof,

The outcome of the investigation recommended that the Department should consider taking corrective measures against the implicated parties.

(b) (i) What are the total number of officials that have been implicated?

The Director General informed me that eight (8) officials were implicated in the report.

(ii) What steps are being taken to ensure this does not happen again?

The Director General informed me that disciplinary measures have been instituted against the employees as per the recommendation of the forensic report. A criminal case was opened with the SAPS Division of Priority Crimes for further investigation. Civil claims processes were initiated through the State Attorney.

Development Bank of southern Africa (DBSA) was appointed as an implementing agent for the projects to ensure capacity for implementation. The department is putting in place a built environment capacity to oversee the implementing agent, with one built environment professional on board and recruitment for two more already underway.

(c) (i) What is the breakdown of the wasteful and fruitless expenditures

The breakdown is as follows:

Name of project	Fruitless and wasteful expenditure identified by AGSA (in Rands)
EC-Rock Art Tourism Phase 2	(3,084,792.00)
FS-Building a Guesthouse in Qwa Qwa Phase 1 & 2	(18,156,178.00)
FS-Sentinel Peak Car Park Access	(366,689.00)
LP-Mnisi Resort	(5,471,066.00)
LP-Vha Tsonga Cultural Village Phase 1 & 2	(4,241,757.00)
NC-Kamiesburg Tourism Development	(2,465,074.00)
EC-Establishment of Chalets at Nyandeni Great Place	(2,164,613.00)
EC-Mthonsi Lodge	(12,215,308.00)
EC-Qatywa Eco-Tourism Development	(16,964,139.00)
EC-Six Day Hiking Trail	(196,359.00)
KZN-Muzi Pan Canoeing Phase 2	(4,666,540.00)
LP-Tisane Cultural Village	(6,394,899.00)
NW-Manyane Lodge	(24,357,631.00)
LP-Sekhukhune Cultural Village	(3,457,121.00)
Total	(104,202,166.00)