The ANC Youth League will not act against the previous managers of its investment company for poor bookkeeping and unaccountability because they were "inexperienced" elected comrades, and not accountants.
An audit probe by Gobodo Chartered Accountants found that the previous board and management of Lembede had failed to keep accounting records or audit financial statements since the company was established in 2000.
Lembede chairperson and the ANCYL treasurer Pule Mabe said they would take "corrective" and not "punitive" actions because the organisation had not suffered any loss. He said some managers were inexperienced. "When you are elected in conferences, it is by popular support. So not everybody elected would have the art of accounting management processes and procedures."
The report pointed out that the entire organisation and its management lacked discipline, transparency, accountability and responsibility and was prone to potential conflict of interest.