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BusinessLive reports that the Government Employees Medical Scheme (GEMS) has admitted to blowing hundreds of thousands of rands of its members’ contributions to pay for an empty building for a year.
GEMS has been forking out more than R60,000 a month to Mowana Properties for its North West regional office in Borekelong House in Mahikeng since September 2017, without occupying it. The rental expenditure has resulted in Public Service and Administration Minister Ayanda Dlodlo calling for an investigation into the matter. Instead of occupying the office space, GEMS opted to rent the Kobo Segole Guest House conference room for R31,000 a month. Insiders said that this has been categorised as "wasteful expenditure", but no one has been held responsible. Dlodlo’s spokesperson said that if the alleged wasteful expenditure should be proven against GEMS, the minister would instruct the board to institute disciplinary measures so that those found guilty “should be made to pay for this waste.”
- Read this report by Zingisa Mvumvu in full at BusinessLive
Get other news reports at the SA Labour News home page