Bisho sends audit team to probe Ecatu's affairs

By Lucas Mati

EAST LONDON -- The Bisho government is sending an audit team to Umtata to investigate the affairs of the embattled Eastern Cape Technology Unit (Ecatu) following allegations of mismanagement and financial irregularities.

The management team would comprise of an external audit firm assisted by an internal auditor from the Premier's Office.

In addition, an acting chief executive officer and acting chief finance officer have been appointed to work with the audit personnel.

Provincial deputy director-general Nombulelo Hackula said the team would probe everyone at Ecatu including the board of directors.

In recent weeks, the board of directors has accused Ecatu staff -- including suspended CE Mpumi Gaba -- of overspending by R1,7million.

Board chairperson Thozi Gwanya has said irregularities included spending R100000 on a team-building exercise and spending on an end-of-year party in December.

He alleged that the funds were taken from the R10m which the Premier's Office had budgeted for rural development programmes in Transkei.

The board also accused the staff of increasing their salaries by 12,5percent without authorisation.

Subsequently, all Ecatu's operations were suspended by the board and bank accounts frozen.

However, Gaba rejected allegations of overspending.

He and staff have alleged that some board members wanted to take over ownership of the corporation, hence they wanted to get rid of the management.

The staff called for the immediate dissolution of the board.

Hackula said this was not a takeover of Ecatu, but the exercise was aimed at ensuring stability within the corporation.

She said it was the responsibility of the board to ensure the continuity of the operations at Ecatu.

She said finger-pointing would not establish a tangible confirmation of any of the allegations, but it was the audit report that should be able to do that.

Hackula said the board's term in office could be addressed within the jurisdiction of Premier Makhenkesi Stofile.