Case scenario Question and answers :

Mrs Steven's the Manager:Staff Training in the Water & Waste Services of the local municipality is,as per her job discreption, responsible for the following: 1. The identification of training needs within the Department; 2. The identification of appropriate courses to address those training needs; 3. The sourcing of appropriately accredited entities and institutions to render such training, 4. The obtaining of (3) independent quotations for the costing of such training, 5. The appointment of an appropriate entity or institution to provide such training, 6. The facilitation of such training by such entities, 7. The certification that such training was rendered for payment purposes, 8. To ensure that the training budget is administered and adhered to.

Her husband, Mr Steven's, owns and runs various occupational health and safety training business entities, offering a variety of courses which the Water & Waste Services Department may require. Mrs Steven's, having identified various courses as required for staff training, requests three (3) quotations from her husband (Mr Stevens) in respect of the entities he owns. Mrs Steven's does not request quotations from any other suppliers. Mr Steven's provides the quotations and one of his business entities is appointed to provide the training. Mrs Steven's sign off the certifications for payment and subsequently Mr Steven's received payment. After a period, an audit is conducted, where upon it is discovered :

That some of the training was never actually conducted,yet payment had been made to the value of R450 000.

That in instances where the training was conducted, the quotes were grossly inflated with the result that the municipality had paid over R600 000 in excess of what the market related costs would have been. On being served notice to attend a disciplinary enquiry, Mrs Steven's resign. At time of resignation, she is due, amongst other amounts, annual leave in the sum of R7500 and her pension fund contributions in the sum of R1600 000.

You are approached by the municipality to provide an opinion as to what, if any measures can be taken against Mr and Mrs Steven's to recover the sums of R450 000 & R600 000 via civil litigation. In your opinion to the municipality you must discuss whether the municipality will be able to recover its losses, by identifying the relevant law and discussing the applicable requirements that govern said law. Please ensure that you apply the law to the facts and include relevant case law. (25 MARKS).