Premier

[1]   Yes. I have been informed by the Provincial Forensic Services [PFS] that a forensic investigation on allegations of financial irregularities was conducted. The forensic investigation was concluded on 30 September 2021 and the report was issued to the Accounting Officer for the Western Cape Education Department [WCED].

[2]   PFS investigated allegations of irregularities involving the School’s former Financial Officer, the former Hostel Supervisor [who had also previously served as the SGB Treasurer] and service providers. It was alleged that:

• certain of the School’s tenants do not pay rental or for services [water, meals and electricity];
• tenants who paid rent in cash to the School’s former Financial Officer alleged that receipts issued to them did not contain the School’s logo [unmarked receipt register] and funds were not banked.
• In addition, the former Financial Officer, former Hostel Supervisor [and SGB treasurer] leased one of the School’s hostels to a number of professional rugby players, on behalf of the School, without written lease agreements in place. The rental income received from these rentals was neither recorded in the School’s records, nor was it deposited into the School’s bank account.

[a]

[i] Findings:

• There were no controls in place to monitor rental payments, renewal of lease agreements and the receipting and banking of rental income, a process which was managed by the former Financial Officer [no segregation of duties].
• There was no evidence to support the former Financial Officer’s version that statements were issued to tenants and that they had issued receipts. Lease agreements were outdated/expired.
• Lease agreements presented to tenants [individuals] by PFS were disputed as not being true copies of the agreements that they had signed [and are believed to reflect forged signatures].
• The available evidence suggests that the Finance Officer [who was responsible for banking of School funds], failed to deposit all rental income received into the School’s bank account.
• R317 250.00 in rental income appeared to be unaccounted for, for the period 1 January 2018 – 31 December 2020 from one group of tenants, however the tenants consulted could not provide evidence to corroborate their versions that they made payments to her [and that they were in fact not in arrears]. Given the former Finance Officer’s admission that she took some of the rent paid by tenants for personal use, it is possible that the rental income which cannot be accounted for may have been misappropriated by her.

• PFS also identified an additional R13 400 in rental income not accounted for, for the period 1 June 2018 - 31 October 2018 from a group of rugby players
• An agreement was concluded between the School and another lessee for lodging and boarding of their trainees [the students], but the students could not occupy the hostels and the terms of the agreement were adjusted. The latter lessee made their rental payments to the School’s rental agent who paid the rental for the duration of the agreement. Based on the available evidence the allegations relating to the non-payment of rent by this lessee was unsubstantiated.

[ii] Recommendations were made that:

• The Department should flag the profile of the previous Financial Officer on PERSAL [she had resigned before the investigation was finalised] so that disciplinary action can be initiated against her should she take up a position in the public service in future.
• The following be reported to SAPS for further investigation:
  • A case of forgery and uttering based on the lease agreements analysed and the versions of the tenants that their signatures were forged on it.
  • A case of theft for the R13 400.00 in rental income that is unaccounted for.

• The Department advises the SGB to consider recovering the unaccounted rental income of R317 250.00 from the former Financial Officer and the R13 400.00 [in rental income unaccounted for from the rugby players] from the former Financial Officer and former Hostel Supervisor.

[b]     Please refer this question to the Western Cape Education Department.  

[3]       No cabinet members were implicated in any wrongdoing during the investigation of financial irregularities and /or maladministration at Heatherlands High School. The implicated individuals were one former WCED official and one School Governing Body appointee.