Roads Agency Limpopo Axes CEO Over Financial Mismanagement
The CEO of Road Agency Limpopo (RAL), Gabriel Maluleke, has been fired following allegations of financial mismanagement ehich overcommitting RAL R1.3 billion on projects.
The termination of his employment follows his suspension on the 30th of August 2024 after he was charged with dishonesty, financial misconduct, negligence, and the contravention of certain sections of the Public Finance Management Act (PFMA), among others.
The main contributors to this massive irregular expenditure icludes, irregular appointment of service providers as there was no clear criteria for appointment of service providers.
Irregular appointment of service providers as proper SCM processes were not followed and projects not budgeted for in the prior years.
RAL also has serious Supply Chain Management (SCM) issues. The entity seemingly established a Contractor Panel where a small pool of prequalified contractors were approved to take on road capital projects.
The panel is not in accordance with the SCM legislation in the Public Finance Management Act and during one year, RAL incurred R1,6 billion in irregular expenditure due to appointing contractors through this panel that pre-qualified contractors.
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MEC for the Limpopo department of public works, roads and infrastructure, Ernest Rachoene welcomed Maluleke’s dismissal.
He said it was crucial that the agency take action and apply consequence management, while ensuring that public funds were accounted for at all material times.
“We have committed to the people of Limpopo that the government of the seventh administration will deliver services to improve the economy and the lives of our people.
“I therefore support all efforts towards focusing on the mandate that the people gave us and avoid any form of distractions from anyone who seeks to derail the goal of the government to deliver services,” said Rachoene.