ICASA management under fire

Department of Communications director-general Lyndall Shope-Mafole is "satisfied" with the progress of a hearing into the Independent Communications Authority of SA (ICASA) qualified audit on its 2006 financial results.

This follows Parliament's Standing Committee on Public Accounts (Scopa) hearing, which saw ICASA's operational, financial and HR management under fire.

The hearing was based on the Auditor-General's (AG's) qualified audit on the regulator's results for its full year ended 31 March 2006. It highlighted several concerns surrounding ICASA's adherence to the National Treasury's basis of accounting.

In the report, the AG drew special attention to non-compliance with various laws and regulations; numerous weaknesses in ICASA's human resources management; over-insurance of assets; differences between the fixed-asset register and general ledger; IT controls; revenue administration and performance information.

The hearing saw attention drawn to the relationship between ICASA's council - headed by chairman Paris Mashile - and its management team, currently led by acting-CEO Stanley Mameregane.

Headed up by chairman Nelson Godi, the special committee repeatedly asked ICASA if its council was playing its role effectively and ensuring matters were being done in accordance with expectations.

Admitting there were "defects in the systematic running of the organisation", Mashile defended the council by highlighting the Public Finance Management Act gave the CEO or accounting officer responsibility for all activities in running the organisation, while the council performed an oversight role. He added there was a delicate balance between enquiry and meddling.

In attendance at the meeting, Shope-Mafole explained to the committee the relationship between ICASA's council and its management had been a controversial issue when the Department of Communications had looked at the dynamics of the ICASA Act. The roles and responsibilities of the two levels was a problematic issue that needed to be addressed further, she said.

ICASA assured the Scopa committee that it had introduced new measures, policies and procedures to ensure its compliance with the various rules and regulations that apply to the organisation.

These include regular meetings between the council and its management board to assess adherence to the budget, implementation of proper tender processes and improved alignment to procurement policies, introduction of quantifiable performance management agreements and ultimately improved financial reporting.

Godi also expressed the committee's concern about the adverse publicity surrounding the regulator. Since the start of the new year, the organisation's dealings with various senior managers have pushed it into the media spotlight.

In January, the organisation announced ex-CEO Jackie Manche had resigned from the organisation, thereby avoiding charges of financial mismanagement.

The announcement was followed by revelations that ex-CFO Bridget Mohlala - who was accused of stealing R110 000 from ICASA - had joined the AG's office. Mohlala has since been suspended as the AG's office investigates transactions within its Transactional and Operational Unit.

Shope-Mafole says she is satisfied with the Scopa proceedings and appreciated the interest shown by the committee, which indicated its level of interest in the success of ICASA in executing its responsibilities.

"At the hearing, a number of issues were put before the ICASA delegation and the department is satisfied with the answers given; particularly the commitment given by ICASA that the authority has put internal policies and procedures in place to avoid the situation of getting a qualified report from the AG," she says.

The director-general adds the department has committed to addressing ICASA's capacity challenges in line with the added responsibilities introduced by the ICASA Amendment Act.

"On the issues going forward, the department will be looking at the ICASA Amendment Act to ensure the issues of segregation of duties between the council chairman and CEO of ICASA are adequately addressed, so the performance of the regulator is not compromised by these blurred lines of responsibilities," she confirms.

ICASA has been ordered to hand over further documentation to Scopa by the end of next week.