Johannesburg, 29 March 2011 - Following serious allegations of ineffective management  and the ability to deliver on its mandate  Buyisa-e-Bag (a government funded entity) , a proposed turnaround strategy has been produced to ensure that the company complies with relevant regulations, codes and standards such as PFMA (Public finance management act), treasury regulations, companies act, King III.

When the CEO was questioned regarding the forensic audit confirmed that a forensic audit was conducted by independent consultants based on the recommendations of the external audit. He further stated that in line with the Prevention of Corruption Act it was incumbent on the Board and the CEO to report the matter based on the findings of the forensic audit relating to alleged fraudulent activity. This matter was also reported to and SAPS (South African Police Services) and SARS (South African Revenue Service) who are also investigating the matter as there were VAT matters contained in the findings of the report.

In light of the negative rumours and recent attacks on Buyisa-e-Bag in the media and at public forums, a press conference to address the issues and to set the matter straight, was conducted today in Johannesburg, this included sharing the achievements of Buyisa-e-Bag over the past year, the plans for the new financial year beginning April 2011 and a proposed turnaround strategy for the company.

The proposed turnaround strategy will address areas of corporate governance and operations and he stressed that the major keys to its success would involve the support of the department of environmental affairs, municipalities, the private sector and the department of education.

The CEO also denied rumours that the Department of Enviromental Affairs (DEA) has plans to shut Buyisa-e-Bag down as of the 1st of April 2011, saying “I am not aware of the imminent closure of Buyisa-e-Bag, we have had constructive discussion with the DEA on how to turnaround the company and making compliant with the PFMA. Buyisa-e-Bag plays an important role in government strategy of job creation and poverty alleviation and economic growth.”

Over the last 5 years Buyisa-e-Bag has created over 58000 direct and indirect jobs. In the coming financial year Buyisa-e-Bag plans to create 765 new jobs (both permanent and casual), and will involve over 18000 school children in several planned initiatives (youth empowerment, clean up campaigns and schools education programme).

The proposed turnaround will take a phased approach, in which after the final phase Buyisa-e-Bag intends to be the leading institution in the recycling industry, and a reckoning force that will transform the waste and environmental management arena in South Africa. Operationally, Buyisa-e-Bag will have clean audit reports and a high level of transparency, with less dependency on government funding, in its bid to become self sustainable.

A pilot project called the Green ambassador programme, is planned in 15 schools in and around Gauteng, each school has an average number of 800 learners.

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For more information and media interview opportunities contact:-

Desiree Madlala
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
011 452 0414
082 451 4441

Visit www.buyisaebag.co.za to learn more about Buyisa-e-Bag.