Correctional Services flayed after receiving 18th qualified audit

“WE CANNOT continue, after 18 years to have a department with qualifications [in its audit],” the chairman of Parliament’s oversight committee on correctional services, Vincent Smith said yesterday.

Smith was referring to the department’s latest annual report, in which Auditor-General Terence Nombembe gives it its 18th qualified audit since 1994.

‘Cannot continue to have a department with qualifications’

Nombembe highlighted a litany of irregular, fruitless and wasteful spending, including R38 million wasted because of the absence of a proper agreement between Correctional Services and the Department of Public Works. Fruitless and wasteful expenditure in the last financial year totalled R71m, with a further R215m under investigation.

The department’s annual report showed it paid out more than R902m in claims against it for bodily injury and assault, and that it failed to curb the rate of assaults among inmates.

In his report, Nombembe said 47 percent of performance targets set by the department had not been met.

He also revealed the department had underspent its budget by almost R900m.

Last year’s total underspending amounted to R410m.

Nombembe said investigations were under way against employees implicated in fraud, theft, procurement irregularities and subsistence and travel costs fraud. Last year 163 cases were dealt with; 145 disciplinary hearings were finalised, with 141 officials found guilty and four acquitted. Only two resigned, while 15 cases were withdrawn and the contract of another staff member was rescinded.

Nombembe said Correctional Services national commissioner Tom Moyane had failed to:

Ensure the department maintained effective, efficient and transparent systems of financial and risk management and internal controls.

See that financial statements presented for auditing were drawn up according to regulations.

Take “effective and appropriate” steps to collect money due to the department on time as required by Treasury regulations.

Prevent fruitless and wasteful spending.

Ensure money owed by the department was always paid within the 30-day period required by Treasury.

See that staff did not abuse sick leave.

Implement control sys- tems to protect and maintain assets and prevent theft, losses, wastage and misuse – as required by Treasury regulations.

Committee chairman Smith said Moyane was “ultimately” accountable for the whole department and he would have to be the one to “respond to us [the committee]”.

He said the Public Finance Act was clear that “the buck stops with the accounting officer”, even though Moyane may not have been directly responsible.