By Confidente Reporter
A forensic investigation conducted by PricewaterhouseCoopers into the conduct of suspended Omaruru Municipality, Chief Executive Officer, Edward Ganaseb has established that he irregularly approved a payment of nearly N$1 million into Tipeeg projects and a criminal case should be opened against him.
Although Cabinet last year authorised action be taken against officials accused of alleged maladministration and embezzlement of the municipality’s money, findings of the PwC investigation were never made public.
Ganaseb allegedly approved a payment to Rebirth Investments of N$962 247.50 a company that was awarded a tender in 2012 for the tarring of roads in Omaruru with no work ever done by the company.
Ganaseb and the entire Omaruru councillors were suspended after investigations by the Anti-Corruption Commission uncovered mismanagement and irregularities in the administration of the council. The matter is yet to be finalised.
The PwC forensic report was commissioned by then Minister of Urban and Rural Development, Charles Namoloh.
“We also recommend that you consider disciplinary action against the CEO for the above mentioned action. We also recommend that you report a criminal charge against Rebirth Investments and its member for providing a false invoice to the municipality for work that has not been performed by the entity.
“We also recommend that you consider disciplinary action against the CEO and Council for taking over the Tipeeg project whilst they should have been aware that the municipality did not have the required vehicles and equipment to perform this project. This negligent action led to large expenses being incurred and paid for with Tipeeg funds. We recommend that the municipality in consultation with the Ministry and Telios consider obtaining additional funding from the ministry in order to finalise this project,” the report states. The investigation also recommended that Ganaseb pays back all money the Omaruru Municipality as a result of his alleged awarding of himself a salary increment and a N$35 200 bonus without the approval of the Minister.
“Since the approval of the Minister was not obtained during the process of increasing the salary of the CEO, we recommend that you consider recovering all amounts from the CEO that was overpaid to him. In addition, based on the available supporting documents, it is not clear in terms whereof the performance bonus was paid to the CEO. Based on this, we recommend that you consider recovering the amount paid to the CEO from him.
“In addition, we also recommend that you consider disciplinary action against the CEO for approving a performance bonus when his performance was not measured as required by his employment contract. Since council allegedly approved this performance bonus, we also recommend that you consider disciplinary action against councillors who allegedly approved this performance bonus.”
The forensic investigation has also recommended to the Minister that the Omaruru Municipality refunds all people it had sold erven illegally without ministerial approval.
The investigation also recommended that Ganaseb be dragged through a disciplinary hearing for this.
“Based on the information provided by Mr Rudd, the CEO misrepresented to the involved individual/entities that the municipality can sell the particular plots at the time. In addition, the municipality also sold the particular pieces of land whilst the required approval from the Minister was not obtained as required by the Act. We recommend that the municipality considers disciplinary action against the CEO for making misrepresentations to these individuals/entities. This action could lead to possible civil action against the municipality by these individuals/entities. We also recommend that the municipality consider refunding all amounts paid by these individuals to the municipality, until the rezoning of erven occurred and these erven can legally be sold to individuals or entities.”
Although the forensic investigation exonerated Ganaseb and recommended that no disciplinary action should be taken against him in the irregular compiling of beneficiaries for the Build Together Projects as he was not involved in the process it established that Ganaseb could have allegedly approved payments for fences and paint for the Build Together houses which is irregular.
“We recommend that you consider disciplinary action against the CEO for authorising payment of unbudgeted expenses and allocating the expenses to incorrect expense votes. This behaviour is evidence of financial mismanagement and poor corporate governance.”
PwC also recommended that Ganaseb and other council members be hauled before a disciplinary hearing for gross mismanagement of the leasing of municipal camps. “In addition, you should consider obtaining affidavits from the current persons leasing the camps from the municipality relating to the alleged subleasing of the camps and report the possible nepotism and favouritism of council members and the CEO to the ACC for further investigation.”
When contacted on Tuesday, Ganaseb refused to comment on the matter.
“You are very late,” is all he said without explaining.
Confidente. Lifting the Lid. Copyright © 2015