Post Office CEO on leave of absence pending probe

[TrueBlueTerrier]

http://www.businessday.co.za/articles/C ... ?id=156320" onclick="window.open(this.href);return false;

Post Office reports 48% drop in after-tax profit as Motshoanetsi Lefoka, CEO of the parastatal, is placed on extended leave

Motshoanetsi Lefoka, CEO of the South African Post Office, is on a leave of absence pending the outcome of an investigation into the lease for its new Centurion offices, which has revealed irregular and wasteful expenditure of nearly R450m, the company announced at its annual results presentation on Tuesday.

Vuyo Mahlati, chairwoman of the parastatal, confirmed the CEO was on extended leave.

The Post Office’s financial results were delivered by Nick Buick, acting chief financial officer, in the absence of the CEO. He said profit after tax for the full year was down 48% to R152m, from R293m a year earlier.

Last week, the Post Office’s chief operations officer, John Wentzel, resigned amid the investigation.

Ms Mahlati also confirmed that an agreement was reached with Mr Wentzel relating to the Centurion lease deal. His name has also been linked to a R55m tender deal with PwC, the professional services group, that the South African Postal Workers’ Union claims flouted procurement procedures.

Ms Mahlati confirmed in August that a 16-month investigation had revealed irregular expenditure of R425m and fruitless expenditure of R19m relating to a lease for Eco Park in Centurion.

She indicated that senior staff and executives could face internal disciplinary processes and be dismissed, as well as criminal charges.

The Communication Workers Union, which lodged the complaint that led to the investigation, had long called for the dismissal of Ms Lefoka and Mr Wentzel, saying they should be held accountable for the lease, which included the payment of rental from 10 months before staff moved into the offices.

The parastatal has largely kept its head below the radar in the past few years, trying to stabilise chief executives that threatened to tear it apart. Khutso Mampeule, CEO at the time, was fired in May 2007, allegedly for undermining the board and exposing the Post Office to R1bn in claims.

[Wessex]

Parastatal, now that's a word most people would not have heard of before ,including my spellchecker

[TrueBlueTerrier]

Parastatal, now that's a word most people would not have heard of before ,including my spellchecker

Yes Royal Mai; can be described as Parastatal (A company or agency owned or controlled wholly or partly by the government.) whereas the Bankers and some managers are Parasitical.

[Wessex]

...leaving the host body just alive, so they can continue feeding off it ..ugghh