Minister wants lifestyle audits of IDT board
The Independent Development Trust (IDT) wants lifestyle audits, a state-owned entity that falls under the department of public works and infrastructure has been at the center of allegations of mismanagement and procurement malpractice amounting to R836m relating to an oxygen plant project.
The entity manages the implementation and delivery of critically needed social infrastructure programs. Dean Macpherson, the department minister, has recommended that the IDT’s new board members undergo lifestyle audits.
James de Villiers, the minister’s spokesperson, unpacks what prompted this move.
Sowetan: What specific red flags or concerns triggered the decision to implement these lifestyle audits?
De Villiers: The minister can only recommend that the board should consider this issue, as only they can take such a decision. Just as we are doing 400 lifestyle audits in the department, and considering the serious allegations of mismanagement, corruption, and problematic tender processes [in the oxygen plant project], it would be a useful tool to build public trust.
Sowetan: When will these lifestyle audits begin, and what is the expected timeline for their completion?
De Villiers: It is up to the board to determine when the audits will begin and be completed, but the minister urged the board at a meeting on Monday that they should be instituted as soon as possible.
Sowetan: Lifestyle audits have long been talked about in government circles – what makes this different, and what exactly will be scrutinised in these audits?
De Villiers: As there has been a pattern of serious allegations of corruption and mismanagement at the IDT, a lifestyle audit will help to determine whether any individual has possibly received kickbacks or bribes to be able to live lifestyles which are beyond their means. A lifestyle audit will measure an official’s expenses against their income, and it will then be easy to identify those who spend more than they earn through buying cars, holidays and other expenses. This may raise flags that an official was possibly involved in corruption, fraud, or financial mismanagement.
Sowetan: Since the intention to conduct these audits was made public, will the findings be released in the interest of transparency?
De Villiers: The board will have to consider that as they would be commissioning the audits.
Sowetan: What are the consequences for board members found to have unexplained wealth or conflicts of interest?
De Villiers: Where bribery, corruption, fraud or other crimes have been found – either through the independent PwC investigation or the lifestyle audits – internal disciplinary processes will be followed and matters referred to the police for further investigation. This applies to any official in the department or one of its entities.
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