As if that is not enough, Directorate on Corruption and Economic Crime (DCEC) is on his radar. DCEC's mouthpiece Nlayadzi Gambule only went as far as confirming that they are investigating Thamane and CEDA.
Some former employees of the under fire Citizen Entrepreneurship Development Agency (CEDA) this week submitted a petition to the Ministry of Trade and Entrepreneurship alleging abuse and harassment by CEDA management. In a petition received by the Assistant Minister, Baratiwa Mathoothe, the former employees lamented that they were wrongfully expelled from work for various reasons and want their way back in or compensation. The former employees also lament that some of them lost their properties in dubious court actions. It has also emerged that a number of former employees still have various cases before courts against the agency mostly emerging as a consequence of a policy where all employees who leave the agency whether by choice or fired were obliged to settle their loans.
According to sources, the CEDA management has passed a new policy including the loan repayment policy, which could potentially be viewed as a move to cushion themselves in case they are removed from work. The CEDA management is understood to have late last year approached their board requesting that they revise the existing loan policy, which required employees to fully repay their loans before leaving the agency. The adjusted policy, which the board is said to have acceded to, would allow such individuals to continue repaying their loans, even if they were to leave or be removed from the organisation. Though he would not be dragged into sharing contents, Mathoothe confirmed receipt. “We have received a petition from former employees of CEDA who have raised multiple issues. They touch on how they were removed from work, how their properties was sold and also whistle blow on possible corruption cases. We are still studying the contents of the petition and we shall see if its contents become part of the forensic audit into the institution,” he said.
Before receiving the petition, Mathoothe on Monday served Thamane with a suspension letter from Minister Tiroeaone Ntsima at his residence. The length of the suspension was not disclosed, with the Minister stating that it might be until the forensic audit is completed or once auditors are satisfied with the process. Ntsima emphasised that the purpose is to allow those who will be doing the impending forensic audit at CEDA an opportunity to do their work without any “disturbance.” The suspension follows widely documented allegations of corruption allegedly rocking the agency, which also saw CEDA, Thamane and others going to court recently.
Ntsima, who is currently in Davos, Switzerland, on official duty added: “We fear that if the CEO (of CEDA) is still at work whilst the forensic audit is in process, it might one way or the other defeat our objectives.” Ntsima announced the decision to launch a forensic audit following a petition by citizens led by Setlhomo Tshwanelang. In the petition signed by over 20, 000 people online, the petitioners urged Parliament to take immediate action against corruption in all its forms stating that it has proven to be a cancer that is eating away at the foundation of the country and undermining the very fabric of democracy. They called upon legislators to undertake a requirement for the full disclosure of all business transactions for board members (past and present) since the appointment of the incumbent CEO, Thamane. “Further, a probe into how soon or after they were provided in their tenure. Set up a commission of inquiry to look into the activities of CEDA board members, past and current, and review projects that received special dispensation from them,” they wrote.
They also wanted an inquiry on the appointment of CEDA ambassador, Sonny Serite, and the number of businesses that are related to him that were funded, and whether those met the lending criteria and whether there was no conflicts of interest. The petitioners also wanted government to set up a provision of all the projects for politically exposed persons and disclosure as to how their transactions have been treated. “Provide a full disclosure on the procurement of its current CEDA offices under Thabo Thamane. Review the process of eliminating other potential offices in favour of the current landlord. A full disclosure of its pricing compared to other potential landlords,” they wrote. They also called for the suspension of Thamane, the CEDA Executive and the CEDA Board to allow for a full investigation to be carried out without their interference.
The petitioners called for establishment of a transparent and accountable system for the loan application process, which will eliminate bias or lengthen turnaround time and appeal process. They also called for a forensic audit to establish the extent of corruption that took place at CEDA, and also set up an Independent Oversight Body or commission, which will monitor the activities of CEDA and its board with the power to investigate claims of corruption and financial mismanagement. They also want for CEDA to publish its Audited Financial Reports and make those readily available on their websites and platforms for public scrutiny. They want an inquiry about the number of CEDA clients who have had their delinquent loans written off as bad debts in the last 10 years. “A provision of shareholders/directors and justification for such. Inquire on who acted as the shareholder in the writing off of these bad debts.
In addition, did any of these receive further funding? Inquire as to whether any individuals/companies/related parties benefited from further funding after the writing off of bad debts. Inquire which individuals/companies have enjoyed multiple loans and the justification,” they wrote. They also called for an inquiry on tenders that were awarded through a direct contract in the past 10 years and the relation those companies had/have with the CEDA executive and board members and whether conflict of interests was declared or whether there was no direct influence from the CEDA CEO. They also wanted an inquiry on properties that were repossessed by CEDA and were later bought by CEDA executive and board members. They want to test whether there was no insider dealing that may have led to some of those properties being bought at a value significantly lower than they were worth.
