Irregular expenditure at SOEs increases
AUDITOR-general Kimi Makwetu has revealed that the value of irregular expenditure at state-owned enterprises has increased.
Yesterday, Makwetu said while the number of state- owned companies with irregular expenditure decreased this financial year, the actual value has seen a major increase.
Makwetu’s audit outcomes, which he released yesterday, note that Airports Company SA (Acsa) has seen a 60% increase in irregular expenditure – amounting to R1 169 million – due to non-compliance with legislation on contracts.
The SA Post Office has accumulated R719m compared to R127m in the previous financial year with 47% being due to compliance with procurement processes while 37% was a result of not following competitive bidding.
In terms of the reported regressed financial health of SOEs from the previous year, the SABC was commercially insolvent by the end of this financial year.
Makwetu revealed yesterday that the delayed audit of the SA Revenue Service will be signed tomorrow. Sars had threatened to take Makwetu to court over the dispute on the payment of bonuses to senior management.
“It’s an governance that gets entrenched over the years if not dealt with.” He said Sars was making a R3m payment to senior managers without following its processes and procedures.
According to Makwetu, he had warned Sars commissioner Tom Moyane that he did not have final approval for payment of bonuses and that there was someone above him who had to approve.
Makwetu also announced that the Passenger Rail Agency of SA did not submit its financial statements.
In his Medium Budget Policy Statement in Parliament last week, Finance Minister Malusi Gigaba said: “There are widespread concerns about the governance and performance of key stateowned companies.
“National Treasury is currently working with law-enforcement agencies to investigate contracts, which are alleged to be irregularly procured in certain stateowned enterprises.”
He said the companies were developing a poor reputation with the public, adding that they had become a major fiscal risk due to government guarantees of their debt.