A women business association has accused Eastern Cape government officials of corruption.
Women in Trust said the officials visit their establishments demanding that their travel vouchers be converted to cash. These vouchers are given to the officials so they can get food on their travels. Instead, they now ask that instead of food, they be given the cash.
Women in Trust represents women in the overnight accommodation industry – bed and breakfasts and guest houses. It made this accusation earlier this month but this is nothing new in the province.
In 2019, the local treasury raised the alarm.
This is against the rules
Eastern Cape Finance MEC Mlungisi Mvoko said government officials who claim cash back from the hotel sector are violating regulations.
That year, provincial departments and public entities also issued an instruction to ban the practice.
“National Treasury subsequently issued PFMA SCM Instruction No. 07 of 2022/23 on Cost Containment Measures Related to Travel and Subsistence re-affirming the prohibition,” he added.
Practice falls short of conduct required of public servants
According to Mvoko, exchanging a meal ticket for cash is illegal and inconsistent with the ethics and professional conduct required of public servants.
“We don’t know who and how this problem started as it could have been any of the stakeholders in the value chain. But the spirit of our meeting with Women in Trust was that we must find solutions instead of pointing fingers,” Mvoko said.
He added that anyone who does this makes themselves guilty of an offence of corruption and therefore liable for prosecution. This is according to the Prevention and Combatting of Corrupt Activities Act.
Provincial treasury making all know this is illegal
“As provincial treasury, we are now raising awareness against this practice. I will engage the Executive, which includes heads of public institutions, on this issue at our next meeting. Our officials will also create awareness at the level of Chief Financial Officers and Supply Chain Management Forums.
“Provincial government has a responsibility to support all businesses, especially small businesses, through its procurement policies. This is an unfair practice, and if left to continue, it has a potential to kill businesses, ” MEC Mvoko added.
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