By Penwell Dlamini

The South African Post Office has blown R425 million in "irregular" expenditure and R19 million in "wasteful" expenditure related to a dodgy property lease agreement.

The funds were wasted as a result of the top managers' decision to relocate head office from Pretoria Central to Eco Point, a building in Centurion.

An investigation commissioned by the Post Office board has since established that the procedures followed in procuring the new building were flawed.

When the board was first told about the relocation, it raised concerns, among others, about the time frame of the contract, which then was five years.

The old head office was marked to be rented out.

Last year the lease agreement was signed and more than 2500 employees have since moved into the new building.

Presenting a brief report, board chairperson Vuyo Mahlati defended the management decision to relocate, saying it would meet the company's overall strategy.

"The decision to move is not regrettable. What we regret is the behaviour of those individuals there who were entrusted with the responsibility to facilitate the process," said Mahlati.

Though the 16-month-long investigation revealed irregular expenditure of R425million and fruitless and wasteful expenditure of R19million, the Post Office only hopes to recover R19million.

The investigation found various governance deficiencies as well as misrepresentation of facts to the board.

At least one director has been given a final written warning.

Two employees in the property division have left the company. In one case, the Post Office did not renew the employment contract while the other staff member resigned before the investigations were finalised.

But the Communications Workers Union (CWU) feels the actions taken by the board do not match the weight of the allegations involved.

"These are serious allegations of corruption. We are of the view that people took money into their pockets during this process.

"So all those who are implicated in the allegations must be suspended, and if found guilty, they should be fired," said Matankan Mothapo, CWU spokesperson.

Mothapo said the union presented its concerns to the Public Protector last month.

But Mahlati indicated that disciplinary action would be taken only when "findings have been tested".

Mahlati said information had also been passed to the police to investigate and the detailed report would be given to Communications Minister Roy Padayachie.

Source: Sowetan