Parliament, Thursday, 22 February 2024 – The Portfolio Committee on Tourism is appalled by the financial mismanagement of R30 million, set aside by the Minister of Tourism in 2020 to provide financial relief to freelance tourist guides in the post Covid-19 period, and the R104 202 166 that had been set aside for infrastructure projects.
The committee received a briefing, in a partially closed meeting, on the progress achieved in relation to various forensic reports commissioned by the Department of Tourism and South African Tourism. The committee was also briefed on cases reported to various law enforcement agencies and the consequences imposed on the implicated departmental officials and stakeholders. The investigations into the Department of Tourism and South African Tourism were initiated following the Auditor-General’s findings arising from investigations in the wake of information provided by whistle blowers.
The committee was shocked to hear about wanton irregular financial relief payments made to deceased beneficiaries (R27 000), employees in the service of the state (R184 500); and municipal employees or entities (R76 500). Meanwhile, the Department of Tourism paid duplicate beneficiaries R18 000 and provincial registrars paid duplicate beneficiaries another R18 000.
The committee noted that the department has embarked on debt recovery from beneficiaries who incorrectly benefitted from the process. The committee urged the Minister to collaborate more effectively with other government departments to improve its systems; for example, the Tourism department does not have access to an up-to-date deceased database, which is held by the Department of Home Affairs. The committee also encouraged the department to improve its process of vetting and registering tourist guides.
The committee was also shocked to hear about misdirected funds in the Expanded Public Works Programme (EPWP), with R104 202 166 reported in fruitless and wasteful expenditure. In this regard, the committee heard that the construction costs for the Manyane Lodge, a tourism establishment in Mahikeng, escalated by some R26 million from the original R23 million to ensure that the project was completed, funds that were misdirected from the EPWP.
Departmental officials, including the positions of Deputy Director-General, Chief Director and Director in the Department of Tourism, were found to have committed financial mismanagement by failing to exercise their delegated authority in this matter.
There is evidence of unduly increasing project funds by 99.9% on some projects. Cases have been opened with various state law enforcement agencies but none of the implicated officials and companies have been prosecuted, and all those implicated are still serving in their posts, with no consequences whatsoever. This situation that enraged the committee Chairperson, Ms Tandi Mahambehlala, and she urged the Minister to ensure that proper consequence management is implemented.
The committee further noted that the cases have been reported to the South African Police Service and not the Directorate for Priority Crime Investigation; the committee was not satisfied with the explanation given for this state of affairs.
The committee was also displeased with the concluded and ongoing investigations at South African Tourism, as particular individuals appeared to have been targeted. The investigations by the Board have also created an untenable working environment at South African Tourism, with staff living in fear due to continuing victimisation. The committee indicated that it supports the work of whistle blowers. However, the burden of proof lies with the Board of South African Tourism before any action is taken against implicated staff.
The committee was infuriated that the South African Tourism Board appears to be engaged with matters outside its core mandate, instead of ensuring that South Africa is marketed effectively both at home and abroad. The committee encouraged the Board to focus on its core mandate and desist from destabilising infighting.
The Minister of Tourism, Ms Patricia de Lille, was equally shocked at some of the information that emerged during the meeting, particularly on the South African Tourism matters. The Minister made an undertaking to the committee that she will familiarise herself with the issues and ensure that the Department of Tourism and South African Tourism draft action plans to resolve the various issues. She undertook to report back to the committee in two weeks’ time on these undertakings.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TOURISM, MS TANDI MAHAMBEHLALA.
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Name: Malentsoe Magwagwa (Ms)
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