Former Acting CEO Julie Diphofa has admitted to bypassing proper hiring procedures to handpick her close associate, Puleng Lesala, for a lucrative project manager role, just in time for the next big funding cycle, the Presidential Employment Stimulus Programme (PESP) 6.
The position is meant to be temporary and only open during new funding rounds, but Diphofa appointed Lesala without any funding call or HR approval.
“She didn’t follow any recruitment rules. The last project manager role expired last December after PESP 5. There was no vacancy after that, and that position isn’t even in the NAC’s structure. The next temporary project manager position was supposed to open in the next funding round. However, Diphofa had already handpicked Lesala,” said a deep throat familiar with the matter.
CEO stands her ground
When Sunday World asked Diphofa about the appointment, she defended her actions. “The position was authorised by me, as interim CEO. Puleng is an astute professional with 17 years of experience. This position did not need to be advertised, as it was an internal temporary secondment to the project management role to fulfil a specific functional requirement. The position has been filled on a temporary basis.”
However, whistleblowers allege that the whole process is suspicious, alleging that key players have lined up to ensure certain companies receive funding.
Sources say Lesala was initially an arts development officer but was mysteriously promoted to acting development manager when Diphofa became interim CEO. When Diphofa returned to her previous role as Arts Development Manager, Lesala was appointed as the project manager.
No justification for role
Eugene Mthethwa, an EFF member and part of the Portfolio Committee on Sports, Arts and Culture, criticised Diphofa: “We acknowledge that those in authority at the NAC can recommend individuals for certain positions; however, such appointments must be backed by a valid and compelling reason. In this case, there was no justification for creating the project manager role, especially with no available funding call. Proper HR processes should have been followed, and this matter warrants further investigation.”
A whistleblower insisted this is in preparation for PESP 6: “The call for PESP 6 will be issued soon, but the beneficiaries are already predetermined. A handful of these companies are directly connected to board members. There’s even an IT person tasked with sabotaging applications by removing attachments, ensuring some applicants fail from the start. This is all designed to benefit a select few close to the NAC’s inner circle.”
The whistleblower also revealed that the list of PESP 5 beneficiaries remains a closely guarded secret. “Companies who benefited from PESP 5 are still unknown because many are directly linked to council and board members,” the source said.
Refused to budge
Last year, in August, Diphofa was asked to provide the list of companies that benefitted from PESP 5, but she refused. At the time, she explained:
“The NAC received numerous complaints from beneficiaries who experienced crimes such as house robberies, with criminals demanding money received from the NAC. Other complaints include beneficiaries being harassed by people demanding jobs or specific salaries, claiming entitlement based on NAC funding.
“After careful consideration of the risks associated with publishing the names of successful applicants, and following the benchmarking exercise and consultations with federations, the NAC Council resolved to cease publishing beneficiary names, only releasing the project number, project name, and amount granted to protect beneficiary identities.”
She had promised to release the full list in the annual report, but this did not happen.
NAC Board Chair Eugene Botha declined to comment, saying: “We cannot comment at this time. The matter is being investigated by the Public Protector, and we do not wish to be seen interfering with that investigation.”
