BFA audit report shocker
Mqondisi Dube | Wednesday January 25, 2017 16:23
The confidential report, which is in Mmegi’s possession, details how procurement procedures were flouted and in some instances the BFA subsidiary overpaid for services.
The forensic audit was instituted after the BPL chief executive officer, Bennett Mamelodi was suspended on allegations of financial mismanagement. The league had exhausted its budget midway through the 2015-2016 season.
A South African company, ADM Financial and Forensic Services was roped in, in August to conduct a forensic report at the BPL. The audit covered the period between April 2015 and March 2016 and was meant to determine “maladministration and/or criminal and/or fraudulent activities.”
The BPL finance manager, Mpiwa Bosenogile had presented the auditors with a draft document, The Botswana Premier League Accounting Policies and Procures Manual, which guides procurement procedures at the BPL.
The report notes that the draft document, which was not authorised by the BPL board, does not make reference to the obtaining of quotations or calling for tender prior to proceeding with business expenses.
“This document does not address the control environment in which the finance department should operate,” reads the report.
The auditors noted that the BPL disregarded the document in almost all financial transactions. The accounting firm informed the BFA president, Maclean Letshwiti and second vice president, Marshlow Motlogelwa about the draft document during a meeting held on November 16, 2016.
However, Letshwiti and Motlogelwa pointed out that the BFA polices and procedures document supersedes any Premier League policy and that BPL employees are obliged to comply with BFA policies and procedures.
“Based on the guidance of Messrs Letshwiti and Motlogelwa, all transactions were tested against the BPL Policy and where this policy is silent on certain policies and controls, the BFA policy was used to test the transactions against,” the report reads.
The report said Bosenogile as finance manager, should have been aware that policies and procedures only become effective after authorisation from the BPL board and the BFA national executive committee, and the implementation date recorded in board meeting minutes.
The auditing firm requested tickets for 24 chosen matches, but only tickets for 11 matches were presented.
Of the 11, there was a shortfall of P2,653.50 in four matches, while there was a surplus of P1,425 in one match involving Township Rollers and Galaxy FC. In the other six matches, no recordings were found.
The auditors also found that there were no tenders issued for any expenses larger than P50,000.
“Mr. Bosenogile admitted that the BPL generally did not go out on tender for services and goods and that quotations were generally not requested before a decision was made on the purchases of goods and services.”
Bosenogile was suspended last December.
The BPL paid Impact Print and Promo R508,915 for the printing of tickets, without going for tender.
“The tender procedure, as described in the BFA Financial Regulations and Procedures was not followed. A 50% deposit to the value of P207,584.84 was paid on or about August 11, 2015.” BPL entered into a website services and maintenance agreement with a South African company, BackPage Media and despite indications that the deal was for an initial one-year period, it proceeded into the second year without a fresh mandate.
“Evidence was found that the contract continued after September 2015. No agreement was made available to prove that the extension was authorised by management.
An email form Mr. Brian Lee from BackPage Media creates the impression that the original contract, which is attached to the email correspondence, was entered for a three-year period, ending September 2017,” the report reads.
BackPage Media charged R62,000 for the publication of a magazine since August 2015, but the contract “is silent on the publishing of the magazine and there is no pricing for the publishing of the magazine contained in the contract.”
Again, Lee said there was a contract to publish the magazine although the auditors indicate that Bosenogile admitted that there was no written agreement to publish the magazine in a reply to Lee in 2015.
The BPL paid World Wide Sports P353,463.71 in October 2015 for the Perimeter Boards and Media backdrops without obtaining any tenders or quotations, the auditors noted.
Sakocha’s Investments received P63,423.32 during December 2015 for computer equipment and also no tenders or quotations were obtained. “This is in contravention of the BFA Financial regulations,” the auditors note.
The BPL overpaid Emergency Assist 991 by P13,500 for ambulance and emergency services in 2015.
Repucom Africa (P118,944.76), Digital Activation Frequency One (P44,208.39) and Excel Car and Van Rental (P423,011.10) were some of the companies to be paid for services without quotations or tenders.