AUE4863 Assignment 2 2026 - Distinction | Due 29 June 2026

AUE4863 Assignment 2 2026 QUESTION 1 25 MARKS Read the scenario and then answer the question that follows: Lefa–La Batho Agri Processing (Pty) Ltd (La Batho) is a medium-sized food processing company registered in terms of South African law. The company’s head office is based in Mpumalanga, and it has branches in Gauteng, Limpopo, Free State and North West province. The company produces maize meal, sorghum, cooking oils, peanut butter and canned vegetables for schools, stores and NGOs in South Africa, Lesotho, Eswatini and Mozambique. La Batho operates four production and storage hubs: Mbombela (head office), Mooketsi, Botshabelo and Mafikeng. La Batho employs approximately 1 850 people across its production hubs and distribution, warehouse and administrative functions. Management is concerned about the inherent risk of inventory and asset misappropriation due to the high decentralisation of production hubs and the large volume of raw materials and finished goods moving between hubs, across borders and to neighbouring countries. These risks are further heightened by past occurrences of unexplained shortages and multiple anomalies in the handling and movement of raw materials, as recently uncovered by the company’s internal audit department, led by Mathapelo Masemola. REQUIRED Identify and critically discuss four (4) different schemes through which raw materials and finished goods could be misappropriated at La Batho. QUESTION 2 45 MARKS Read the scenario and then answer the questions that follow: Mr Jabulani Ncube (Jabulani), Chief Information Officer (CIO) of Ditshabeng Municipality, has been tasked with drafting tender documents with detailed specifications for the supply and installation of drone-based surveillance systems. The project has a budget of R8,865 million, which has been approved by the municipal council. It aims to address the rising incidence of crime, vandalism, illegal mining, car spiking and other illegal activities, and the monitoring of infrastructure established in areas under the jurisdiction of Ditshabeng. This project follows a formal resolution passed by the council of Ditshabeng Municipality in March 2025 and forms part of the Ditshabeng Municipality Integrated Public Safety Initiative (IPSI). Crime prevention wardens, community policing forums and law enforcement agencies will be involved in the project. Jabulani has a preferred supplier, Avion Secure Space (Pty) Ltd (Avion), a technology and security company that specialises in drone and surveillance system integrations. He plans to structure the tender specifications and related documents in a way that will give an advantage to Avion, a company owned by one of Jabulani’s political comrades, Mr. Themba Sibiya (Mr. Sibiya). Shortly after awarding the tender to Avion Secure Space (Pty) Ltd, the municipality receives an anonymous tip-off alleging that procurement processes may have been manipulated to favour the