DMV facing hefty contract cancellation lawsuits


There are currently contract cancellation lawsuits totalling R189 159 000 against the Department of Military Veterans (DMV).

This is according to a presentation by DMV Director-General Irene Mpolweni for the Portfolio Committee on Defence and Military Veterans (PCDMV). She stated: “The outcome of these matters cannot presently be determined” adding no provision is made for liabilities “that may result”.

The presentation for the PCDMV, under the joint chairmanship of Cyril Xaba and Mamagase Nachabeleng, states “effective steps were not taken to prevent fruitless and wasteful expenditure” of R1.3 million. The litany of woes continues with the presentation telling of investigations into fruitless and wasteful expenditure not completed. When added to a lack of consequence management and “other investigations not completed” it points to a government department not being able to deliver on its mandate of providing services to military veterans. These range from pension and healthcare through to the provision of housing and assistance with business establishment and education.

Examples of irregular expenditure in Mpolweni’s presentation include R1.8 million as “a result of contravention of SCM (supply chain management) legislation”. The “root cause”, the presentation has it, are “old contracts entered into without following proper procurement processes”. It warns this will continue while the contracts remain in force.

Sixty-two SCM investigations relating to financial misconduct, fraud and/or improper conduct are ongoing while 64 were completed. Mystifyingly, the presentation notes “appropriate action (sanctions) were not taken as per findings/recommendations from the investigations”.