…in bogus vehicle deal
…as another M394k is “stolen” by JHB consulate staffer
Moroke Sekoboto
THE Auditor-General’s damning report has exposed serious financial misconduct at the Lesotho Consulate in Durban, where M394,620 in public funds was paid for a vehicle that was never delivered.
Only M28,261 of the amount was recovered.
In a separate incident, nearly M400,000 was allegedly diverted into a diplomat’s personal bank account.
Auditor-General ’Mathabo Makenete’s report on the Consolidated Financial Statements for the year ended 31 March 2023 paints a picture of blatant disregard for procurement regulations and a collapse in financial oversight at the foreign mission.
According to Ms Makenete, the consulate had initially been authorised to purchase a new Toyota Corolla Quest Prestige valued at M309,742. However, on 6 July 2022, officials deviated from this approval and instead paid M394,620 for a second-hand Toyota Fortuner.
“An amount of M394,620 was paid for a vehicle that was never received by the Lesotho Consulate in Durban. The payment was made on 6th July 2022, and the matter was reported to the South African Police Service on 8th July 2022 (Case Number 280/7/22). However, the loss report was only submitted to the Chief Accounting Officer on the 10th October 2022, three months after the incident of this loss, in contravention of Section 89 (1) and (2),” Ms Makenete said.
Although the matter was reported to the South African Police Service (SAPS) within days, the consulate delayed submitting a formal loss report to the Chief Accounting Officer by three months—well outside the timeframe prescribed by Treasury Regulations, which require immediate reporting of losses involving public funds.
A joint inspection carried out by officials from the Ministries of Finance and Foreign Affairs between 16 and 20 September 2024 uncovered multiple procurement irregularities. The Consulate failed to invite tenders, did not seek a waiver for the purchase of a second-hand vehicle, and processed the payment through inappropriate officers without valid purchase orders.
“During the course of the audit, I established that a joint inspection was conducted at the Lesotho Consulate in Durban by a team of officers from the Ministries of Finance and Development Planning and of Foreign Affairs and International Relations from 16th to 20th September 2024,” Ms Makenete said.
Efforts to recover the funds have yielded minimal results. While the bank was engaged, most of the money had already been dispersed across multiple accounts. Only M28,261 has been recovered, leaving a loss of M366,358.
“The Consulate had been authorised to procure a new Corolla Quest Prestige (CVT) (B28) valued at M309,742.50. On the contrary, the Consulate opted to purchase a second-hand Toyota Fortuner amounting to M394,620, in excess of the authorised amount,” Ms Makenete added.
In a separate but equally serious finding, the audit revealed that M394,835 was irregularly withdrawn from the Johannesburg Consulate’s bank account and deposited into the personal account of a Third Secretary.
“Contrary to Section 3 (2) (n) of the Code of Conduct, 2005, an amount of M394,835 was reported to have been irregularly withdrawn from the Johannesburg Consulate’s bank account and deposited into the personal account of the Third Secretary. Disciplinary action was taken against the officer involved, who was subsequently recalled from foreign service effective 1st December 2022,” Ms Makenete said.
While disciplinary action was taken and the officer recalled from foreign service, the audit found no indication that the misappropriated funds have been recovered. Furthermore, the Auditor-General’s office has yet to receive a formal loss report or a decision on the matter from the Principal Secretary in the Ministry of Finance.
“However, at the time of the audit, there was no indication that the misappropriated public funds had been recovered. As of the date of this audit report, in terms of above-quoted sections of the Treasury Regulations, my Office has not received the required loss report and the decision on the matter from the Principal Secretary for the Ministry of Finance,” Ms Makenete said.
“These contraventions perpetuate the mismanagement or concealment of public funds. I recommend that the chief accounting officer (CAO) should follow procedures to ensure that the funds misappropriated by the Officer are recovered. The CAO should strengthen the segregation of duties for financial transactions and ensure timely submission of all reports on the loss of public monies, along with decisions taken on such matters, being communicated to the Auditor-General.”
She further recommended that the chief accounting officer take urgent steps to recover the missing funds and tighten internal controls, particularly by strengthening the segregation of duties to prevent any single official from exercising unchecked authority over financial transactions.
