Industry associations applauded the decisive actions undertaken by the Minister of Tourism, Patricia de Lille, and the CEO of SA Tourism, Nombulelo Guliwe, concerning the recovery of R35 million (€1.7m) associated with irregular payments made at the end of March 2023.

Industry associations, FEDHASA, SATSA and ASATA – respectively representing the hospitality sector, inbound industry and southern African travel agents – said in a joint statement: “We commend Minister de Lille and Ms Guliwe for their principled and decisive leadership in proactively addressing this matter head-on.”

De Lille announced yesterday (Monday, April 29) that she had been made aware of a number of irregular payments which were made through South African Tourism’s US and South Africa offices for services not rendered.

She explained: “A number of irregular invoices were created about three days before the previous financial year end (31 March 2023) and processed piecemeal in order to override banking controls. 

“These payments were processed from the US and the South Africa offices of SA Tourism at the end of March 2023 by executives who are no longer in the employment of SA Tourism.”

According to De Lille, the discovery of these irregular payments was triggered by a review by SA Tourism which confirmed that a significant portion received by a media agency during March 2023 and signed off by the then-Acting Chief Financial Officer, Chief Operations Officer and the then-Acting CEO were for services not yet rendered at the time of disbursement.

Transactions linked to media agency

These transactions are linked to a media agency and when these irregularities were discovered, the service provider was informed and conceded that a significant portion received by them and signed off by then-Acting Chief Financial Officer, Acting Chief Executive Officer and the then-COO of SA Tourism were for services not rendered.

“These irregular payments are completely shocking and it is unacceptable that officials entrusted with public funds continue to act with such contempt of public finance laws and regulations. We will not leave this matter unaccounted for. The internal audit report is being finalised and the matter has also been reported to the Auditor General of South Africa to investigate,” De Lille said. 

The Minister highlighted that, following months of communication with the respective media agency to pay back the money for services not rendered, SA Tourism had been able to recover all the funds linked to the irregular payments, for services not rendered.

“We are relieved that all the money has been recovered from the irregular payments. I can also confirm that Auditor General of South Africa is in the process of finalising a delegation from the AG’s office to do an audit on the SA Tourism New York office,” De Lille said.

‘Exemplary handling’

Rosemary Anderson, FEDHASA National Chairperson, commented: "This exemplary handling demonstrates an unwavering commitment to upholding the highest standards of accountability, transparency and good governance within SA Tourism and the Department of Tourism."

Otto de Vries, Asata CEO, added: "The swift identification and recovery of misappropriated funds, coupled with the proactive engagement of the Auditor-General of South Africa for a comprehensive audit, demonstrates a rigorous adherence to public finance laws and regulations. Such actions are essential to maintaining trust and confidence in our vital tourism sector.”

CEO of inbound industry association, SATSA, David Frost, noted: "We are encouraged by the resolute leadership displayed by Minister de Lille and Ms Guliwe in addressing these challenges directly and decisively.

“Their actions secure the financial integrity of SA Tourism while reinforcing South Africa's reputation as a premier global travel destination committed to ethical conduct."

The associations concluded their joint statement by saying: “As key stakeholders and representative bodies within the travel and tourism industry, we affirm our steadfast support and collaboration with SA Tourism and the Department of Tourism.

“We look forward to further strengthening our partnership in advancing South Africa's tourism industry through principled leadership, sound governance and a shared commitment to excellence.”