The head of Gauteng’s Department of Finance (GDF) has been dismissed and could face criminal charges after being found guilty of “gross financial misconduct”, the Gauteng Provincial Government announced on Tuesday.
Stuart Lumka, who had been on special leave since May last year pending an EY investigation into allegations of financial impropriety, had been let go after being found guilty on two of three charges heard by an independent disciplinary hearing.
The GDF said Lumka paid R48.8-million to Shimo IT Solutions when the GDF “had no legal obligation to do so” owing to a lack of contract, as well as an unauthorised acknowledgement of liability to Novell Ireland Software and Shimo, which resulted in irregular or fruitless and wasteful expenditure.
“[Lumko had also been charged with] incurring and/or causing the GDF to incur irregular expenditure of R2.1-million when he signed the Shimo Project charter. Shimo was not procured in a fair, equitable, transparent, competitive and cost-effect manner and through an open tender process,” the department said in a statement.
Lumka had been acquitted on the third charge of causing the GDF to incur fruitless expenditure when he paid Shimo a R1-million cancellation fee.
The province would now await the State Attorney’s decision on whether criminal or civil charges could be instituted to recover the misappropriated money.