The Mandela Bay Development Agency has placed its finance manager, Unati Peter, on precautionary suspension.
This follows a forensic investigation into alleged policy and regulatory breaches linked to the launch of the NMB Film Office and a boxing event at the Nelson Mandela Bay Stadium in June.
At the time, Peter was acting stadium manager and acting MBDA chief executive.
The investigation focused on the MBDA’s R2.875m payment to SAIL Rights Commercialisation for the boxing event at the stadium on June 6.
The event was initially allocated R300,000 for the launch of the NMB Film Office, but the cost rose to about R2.5m before VAT.
The Ziklag Consulting report found no documentary evidence showing how the additional funding had been approved.
It also found that the payment was processed before normal supply chain management and approval procedures had been completed, with key approval sections on the purchase order left blank.
The report said Peter allegedly instructed officials to fast-track the payment.
It concluded that the instruction to process the payment constituted unauthorised and irregular expenditure and recommended that the agency consider consequence management.
Peter said he would allow the MBDA’s internal process to unfold.
“I will leave it to internal processes, and we'll see what the outcome of that is. At this stage, I don't feel any particular way.
“I want to believe that the board is running an ethical and transparent process, and I trust that it is.
“So, I'm looking forward to an outcome that is influenced by fairness, professionalism and just general good governance.
“Otherwise, I don't have any ill feelings towards anyone,” he said.
MBDA interim chief executive Pierre Voges said the board had resolved on Monday to suspend Peter with effect from Tuesday.
“The precautionary suspension of the official is not a finding of guilt as the official is presumed innocent,” Voges said.
He said the suspension was intended to give both Peter and the entity sufficient space for the relevant processes to proceed unhindered.
“The entity requests all stakeholders to allow this process to unfold without interference,” Voges said.
He said the MBDA would not comment further until the matter had been formally concluded.
The agency said it would announce initiatives in the coming days to restore stability, accelerate infrastructure maintenance in the city and revitalise commercial activities at the stadium.
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