The board of state-owned telecommunications infrastructure company Broadband Infraco will take action against any employee who did not follow correct procurement procedures.
The company was reacting to a report on Moneyweb that published details of an internal audit report by Deloitte that revealed several alleged irregularities at the company, including missing documentation and the flouting of tender procedures.
Moneyweb says Infraco chairman Andrew Mthembu and nonexecutive directors Tumi Magasa and Cornelis Groesbeek have stakes in companies that have been awarded tenders by Infraco.
“The necessary sanction will be taken against any accountable person found to be responsible for this noncompliance,” says Infraco communications head Thamie Mthembu.
Deloitte was asked to conduct an audit on Infraco last year, and the report covers the period between April and September.
Mthembu says the audit report highlighted shortcomings related to “internal control processes in the procurement and contract management environment of the company”.
However, he says the board is working to take corrective measures to fix internal process problems.
The report also alleges that some high-level staff involved in tender processes did not disclose their own business interests, resulting in conflicts of interest.
Mthembu says the allegations that employees had not disclosed interests during tender processes have also been investigated.
“Broadband Infraco wishes to state that Deloitte has previously conducted an audit of potential conflict of interest and was satisfied that all interests had been declared and that those involved had recused themselves during the pertinent deliberations of the board and its subcommittees,” he says. — Staff reporter, TechCentral
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