A forensic report by Gobodo highlighted potential issues with a proposal for a 100% Cell C subsidy for a broadband network rollout in Emalahleni from the Universal Service and Access Agency of South Africa (Usaasa).<\/p>\n
Business Times reported that former Department of Communications employee Mothibi Ramusi (now Cell C\u2019s regulatory head) made the proposal.<\/p>\n
The newspaper reported that Usaasa CEO Zami Nkosi wanted to push through the Cell C proposal without following the legally required bidding process.<\/p>\n
Cell C said that they acted within the terms of the Electronic Communications Act, and that it will assist with any investigation.<\/p>\n
The Ministry of Communications said on 15 July 2013 that it has decided to ask independent investigators to look into the allegations of possible corruption and maladministration at Usaasa.<\/p>\n
In a press statement on the Usaasa website, dated June 19 2013, the agency\u2019s board of directors said it had resolved to act on allegations of corruption and maladministration contained in a United Democratic Movement open letter to President Jacob Zuma.<\/p>\n
It decided to \u201cinstruct the independent audit and risk committee to institute an independent investigation into all allegations contained in the letter\u201d.<\/p>\n
In the letter, UDM leader Bantu Holomisa claimed that former Communications Minister Dina Pule and other senior department officials had approved a multi-million rand application by Cell C for the roll-out of broadband infrastructure in the Emalahleni local municipality.<\/p>\n
Holomisa alleged the application was approved despite not being subjected to the normal adjudication process as required by Electronic Communications Act.<\/p>\n
He said that had it not been for the refusal of Usaasa executive Mmatlou Morudu to implement the project, the money would have been released.<\/p>\n
USAASA corruption investigation underway<\/strong><\/a><\/p>\n DA: USAASA \u201cplundered\u201d R4.7 million from fund<\/strong><\/a><\/p>\n