Johannesburg - Former chief financial officer for Eskom and Transnet, Anoj Singh, has been stripped of his SAICA membership following a disciplinary inquiry that found him guilty of 12 of the 18 charges he faced related to his conduct while he oversaw the finances of these entities.
Singh's membership was suspended last year as his disciplinary hearing got underway in November. It was concluded in July. Neither Singh nor his legal representatives were present at the hearing, despite the South African Institute of Charted Accountants (SAICA) informing him of the proceedings.
The inquiry dealt with accusations level against Singh for gross misconduct and negligence for decisions he took while he was in charge of finances at Eskom and Transnet.
Singh was employed at Transnet from 2009 until 2015 when he was recruited to join Eskom. He resigned from Eskom in 2018 while he was on suspension.
SAICA's hearings first dealt with accusation against Singh in the handling of a 1064 locomotive contract at Transnet.
The contract's price tag ballooned from R38.6 billion to R54.5 billion. The cost rise developed from negotiations that were conducted by Singh with various bidders. Singh also signed off on the increases and recommended the price adjustment to be approved by Transnet's board.
With regards to Eskom, the institute investigated Singh's approval of R30 million worth of payments to Gupta-linked Trillion Capital besides the fact that the company had no contract with Eskom.
The institute said Singh should have been more vigilant in his actions and had acted negligently in the process.
"The amounts approved by Mr Singh were in excess of R30 million and the consequences of the payments were that they amounted to irregular expenditure contrary to the Public Finance Management Act. Mr Singh was, to put it mildly, the gatekeeper to Eskom's coffers and his conduct was more than mere carelessness in the circumstances," the institute concluded.
Another Eskom deal Singh was found guilty of, was his approval of an R659 million prepayment to Gupta-linked Tegeta. This payment enabled the Gupta owned company to purchase Optimum Coal Mine, which was under business rescue at the time.
"Tegeta was not yet the owner of Optimum Mine and Eskom had no supply agreement with Tegeta. The only reasonable inference to be drawn was that this amount was being paid in order to assist Tegetta to meet its obligations to the business rescue practitioners and the consortium of bankers to acquire Optimum Mine. This was an improper use of Eskom's funds," the institute concluded.
Singh has been found guilty of 12 of the 18 charges brought against him. He has been stripped of his SAICA membership and he is required to contribute 50% to costs incurred by SAICA in conducting his disciplinary hearing.
SAICA CEO Freeman Nomvalo said: "SAICA members who fail to uphold the highest ethical and professional standards compromise public and private sector institutions and the South African economy as a whole. SAICA is committed to ensuring that members operate in the public interest by taking the necessary steps to ensure a fair and equitable outcome of its disciplinary processes".
IOL