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Free State Social Development explains alleged R2.3m ‘mismanagement’

───   KEKELETSO MOSEBETSI 09:48 Thu, 14 Nov 2024

Free State Social Development explains alleged R2.3m ‘mismanagement’ | News Article
HOD Tumelo Phahlo. Photo: The Weekly

The Free State Department of Social Development has set the record straight on allegations of mismanagement involving R2.3 million, leveled against its Head of Department (HOD).

Departmental spokesperson Thembile Nqabeni expressed dismay over what he described as “malicious and unfounded claims” made in a report by Insider Chronicle, titled “EFF Calls for Justice as R2.3 Million Disappears Under HOD Tumelo Phahlo’s Watch!”

EFF Free State Chairperson, Mapheule Liphoko, criticised Phahlo for what he termed as a consistent pattern of mismanagement since his appointment. He alleged that the Hawks’ investigation into the disappearance of funds highlights a broader failure of accountability within the Free State administration.

“This scandal undermines the integrity and purpose of the Expanded Public Works Programme (EPWP), which aims to provide work opportunities and essential services in struggling communities. By misappropriating these funds, the department has stripped critical support from those who need it most,” said Liphoko.

‘The alleged irregular expenditure dates back to the 2018/19 financial year’

Liphoko also took aim at Premier MaQueen Letsoha-Mathae, accusing her administration of instability, poor governance, and rampant corruption.

Nqabeni set the record straight, explaining that the alleged irregular expenditure dates back to the 2018/19 financial year, during which Adv. Phahlo was not responsible for the management of EPWP funds.

He clarified that in February 2018, R7.004 million was approved for EPWP projects targeting 300 Early Childhood Development (ECD) Practitioners. However, department officials redirected the funds to support 280 Child and Youth Care Workers without authorization from the accounting officer.

“This unauthorised action resulted in R6.4 million being declared as irregular expenditure by the Auditor-General South Africa (AGSA), with R2.1 million classified as fruitless and wasteful expenditure. Following internal audits, disciplinary actions were taken against implicated officials, and the matter was referred to the Hawks in February 2023,” said Nqabeni.


He further emphasised that Phahlo, who served as Chief Director: Corporate Services at the time, was not involved in the approval of funding but led the internal investigation that exposed the irregularities.

“This demonstrates his commitment to good governance, transparency, and accountability, countering the EFF’s baseless allegations,” Nqabeni added.

Meanwhile, the uMkhonto weSizwe Party Youth League (MKPYL) in the Free State has called for Premier Letsoha-Mathae to step down, citing ongoing allegations of corruption and maladministration.

“The recent allegations against the Premier and her close allies represent a significant breach of public trust. This administration’s disregard for good governance has reached unacceptable levels,” said MKPYL spokesperson Lehlohonolo Stona.

OFM News/Kekeletso Mosebetsi mvh

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