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Theft and mismanagement of funds have spoiled the Mandela School of Science and Technology, as a forensic report pointed to the director and his management team of embezzlement of funds received from German electronics company Siemens.
A forensic report by Open Water Advanced Risk Solutions revealed shocking details of how the claims were misrepresented and manipulated after Siemens (Pty) Ltd, the Royal House of Mandela, and sponsors Siemens Stiftung ordered an investigation into the misappropriation allegations.
The 100 million rand school was the result of Siemens making a commitment in 2010 to Nelson Mandela to support the construction of a school in the town of Mvezo, Eastern Cape, fulfilling the lifelong dream of Nkosi Dalibhunga Mandela, whose place his birth is Mvezo.
Now it appears that those running the school have left their finances in shambles and manipulated their funder Siemens Stiftung into paying money for their own benefit.
The school was found to have a poor financial record as it did not conduct bank reconciliations. All funds received from backers were deposited into one account, making it difficult to ensure that specific funds received were used for their intended purpose.
The report found that at least 66,000 euros (R1 046 175) received from the Siemens Stiftung were misused and some ended up in the pockets of the director, his accountant and some members of the SGB.
The misrepresented claims
The report recommended criminal charges be brought against the accountant, as she improperly allocated funds to herself, filed misrepresented claims regarding school guardians, allegedly spent funds on groceries and office supplies, and tampered with supporting documents. to mislead Siemens Stiftung and the education department.
The school misrepresented its expenses and claims submitted to the Siemens Stiftung, which amounted to more than R640,000 for teaching, administration, catering and office supplies, which were found not to be spent in terms of the budget lines of the financing agreement.
For the July 2018 winter school, an expense spreadsheet sealed and signed by the principal reflected an incurred expense of R165 122.91 on budget-related items presented to the funder.
He listed the fees of various teachers, including the principal, for the hours incurred to teach during the winter school program. However, 13 teachers revealed that they did in fact receive much less than claimed, while the accountant informed them “that the school did not have sufficient funds, blaming the Siemens Stiftung for the shortfall,” according to the report.
During the same winter school program, the accountant reportedly paid herself R15,000 for administrative duties, cleaning, and cooking.
Payment documentation submitted to the Siemens Stiftung was apparently duplicated, while expense claims had already been submitted to the education department.
“Teachers were required to complete instructional service claim forms in advance without inserting claim amounts, allowing the accountant to manipulate claims. In this sense, we established that the amounts reported to Siemens Stiftung were inflated with lower amounts paid to teachers, ”the report says.
The principal and three other teachers filed claims and subsequently paid excessive amounts of trips.
This included a claim for R12,000 submitted for office supplies, but the service provider revealed that although they provide office supplies to the school and repair their copier, they are still not paid for the service.
For Spring School 2018, the principal and the three teachers collectively submitted travel claims totaling more than R48,000, while transportation funds were budgeted at R450.
The accountant reassigned R15,000 to herself, but according to the budget breakdown, she was listed as having received R2 100.
The principal was also paid to teach physics during Spring School, but was found not to teach at all.
Take advantage of extra classes
In 2019, the principal introduced Orientation Week for 7th and 12th grade students to accelerate the curriculum and additional classes for critical subjects, outside of the funding agreement with the funder.
Furthermore, the itemized budget that the school submitted to Siemens Stiftung was incorrectly calculated as R147,000 when, in fact, the correct total amount was R99,550. The funder, however, transferred R93,000.
Claims made by teachers who worked during orientation week were over budget, while the practice of paying teachers less and blaming donors for this allegedly continued. The principal also allegedly claimed payment for tuition, as well as filed claims for teachers who did not participate.
Claims for this amounted to R31,500, while another R70,000 was claimed for the weekend classes, on behalf of the teachers who did not participate.
“In conclusion, the school did not use funds amounting to R114 400 for the weekend classes that were misrepresented when reporting to Siemens Stiftung,” the report reads.
The report also found that the accountant submitted fraudulent claims on behalf of five cooks for these weekend classes, as well as R11 700 for transportation costs.
Head rotting fish
Again, during the 2019 fall school classes, it was discovered that the principal had allocated funds four times more than those of the other teachers, an amount that he said he did not recall as he objected to signing and completing the claim form.
When the 2019 winter school program arrived, the accountant submitted claim forms with check numbers for payments made to participating teachers, but the forensic investigation found that the checks were canceled, not issued, or issued as a different payment. to the one indicated.
Members of the school’s governing body were also involved in the investigation, as it was discovered that the president received R154,000 which could not be accounted for while the treasurers signed checks without supporting documents.
Need for criminal charges
It was recommended that Siemens, the Royal House of Mandela and Siemens Stiftung take disciplinary action against the director and members of the SGB, and that the accountant should be criminally charged.
“The conduct of [the bookkeeper] it may have met the elements of crime, fraud and theft and funders should consider registering a case with the South African Police Service, ”the report concluded.
Siemens Stiftung together with Siemens were reviewing the report and seeking legal advice on the necessary steps, the company told The Citizen.
“Siemens has zero tolerance for corruption, unethical behavior and other breaches of the law that are clearly articulated in our business conduct guidelines. Siemens’ continued involvement and contribution to the school was to elevate and enhance the focus on education, specifically in the fields of engineering, science and technology. “
The forensic findings have also landed in the office of the Public Protector, who confirmed that they are still evaluating the merits of the complaint filed.
“The complaint was received. It is currently in a standard evaluation process to establish whether it has merit and falls within our jurisdiction. Only after this process, the Public Protector will be in a position to decide whether to investigate or not, ”said spokesperson Oupa Segalwe.
Numerous attempts to obtain comment from the school and the principal on the charges brought against them were unsuccessful.
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