The Technology Innovation Agency (TIA), an entity of the department of science and innovation (DSI), is caught up in a performance bonus scandal, which saw its top brass, including its acting CEO, award themselves bonuses to the exclusion of scores of workers who qualified for the scheme.
Business Day understands that about 60 workers who qualified for the scheme were intentionally excluded from the performance bonuses that were paid in December 2023.
This is after TIA top brass decided to hike the qualification ratings for the bonus scheme to ensure a bigger pie for themselves and other employees, against the entity’s policy.
The policy says for one to qualify to be considered for a performance bonus, their performance must be rated at least at three out of a score of five. But when the performance appraisals were completed, some of TIA’s executives and board members decided to increase the qualification rating to 3.6 — a decision that excluded more than 50 workers.
The excluded workers did not take this lying down and approached the CCMA for recourse. The labour disputes body ruled in their favour and TIA then diverted money from funding innovation projects to paying the disgruntled workers their performance bonuses, to the tune of nearly R4m.
A source told Business Day that that amounted to wasteful expenditure as the money paid to the workers after the CCMA award was not budgeted for, and that instead the people who were paid inflated bonuses in December should have been forced to return portions that were unduly paid to them.
“A claim was filed at the CCMA by union members concerning the 2022/23 performance incentive bonus, which was resolved amicably in line with the board’s decision. No irregular expenditure occurred and no further corrective actions were necessary following the resolution,” a TIA spokesperson said.
“The performance bonuses were paid in line with the board-approved performance management policy.”
In September, Business Day reported that it had not had a permanent CEO since 2019, with diplomat Patrick Krappie having acted in the role since 2020.
Several members of the entity’s executive committee are also in acting capacities, with some having acted for up to years. The agency has blamed the paralysis on an institutional review instituted by minister Blade Nzimande four years ago — a process that was apparently concluded only a few months ago.
TIA is also facing a R11m lawsuit from a candidate it had selected for the CEO role nearly five years ago, only to renege on the appointment following Nzimande’s decision to halt the process.
TIA was set up in 2010 to support the state in stimulating and intensifying technological innovation to improve economic growth. The agency is also mandated to invest in, and support, innovators, entrepreneurs and SMEs to commercialise their technology
To date, however, the effect of TIA on the innovation landscape has been muted. Business Day also understands that the working from home arrangement of TIA’s CFO has caused discord in the entity, particularly as it relates to expenses to regularly commute between his home in Durban and Pretoria.
CFO Ismail Abdoola has been based in Durban since April 2022, with internal sources saying his travel and accommodation costs have cost taxpayers a fortune due to the nature of the role demanding him to be at TIA’s headquarters in Pretoria.
“Taxpayers are footing the bill for flight tickets, car rental, accommodation and subsistence claims,” the source said.
TIA did not want to answer direct questions relating to Abdoola’s work arrangements.
“TIA has in place a board-approved remote-working policy applicable to all staff,” the entity said.
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