AG’s ad­vice pays div­i­dends

Sowetan - - News -

as the ad­min­is­tra­tive lead­er­ship and se­nior man­age­ment were slow to im­ple­ment their com­mit­ments to ad­dress com­pli­ance find­ings.”

It noted that “ir­reg­u­lar ex­pen­di­ture dis­closed in 2017-18 re­mained high at R6.4bn, of which R4.9bn (77%) re­lated to non­com­pli­ance with sup­ply chain man­age­ment [SCM] re­quire­ments and R1.2bn (19%) re­lated to hu­man set­tle­ments that trans­ferred funds from the hu­man set­tle­ments de­vel­op­ment grant to im­ple­ment­ing agents with­out the Na­tional Trea­sury’s ap­proval”.

“Of the R4.9bn in SCM-re­lated ir­reg­u­lar ex­pen­di­ture, R2.1bn was due to the ex­ten­sion of the bus sub­sidy legacy con­tracts, while R2bn was due to multi-year non­com­pli­ant con­tracts awarded in pre­vi­ous years at health and ed­u­ca­tion.”

The re­port high­lighted that the SCM-re­lated ir­reg­u­lar ex­pen­di­ture does not rep­re­sent wastage or fraud, but this needs to be con­firmed through timeous in­ves­ti­ga­tions by the rel­e­vant ac­count­ing of­fi­cer or au­thor­ity to min­imise and/or re­cover pos­si­ble losses, as had been rec­om­mended in the pre­vi­ous year.

Gaut­eng fi­nance MEC Bar­bara Creecy was con­cerned about the high level of ir­reg­u­lar ex­pen­di­ture which pre­vented a num­ber of de­part­ments from mov­ing to clean au­dit sta­tus, and said the ten­der sys­tem last year pre­vented R1.5bn in ir­reg­u­lar ex­pen­di­ture.

The Or­gan­i­sa­tion Un­do­ing Tax Abuse’s ex­ec­u­tive di­rec­tor Makhosi Khoza said the prov­ince should im­prove the over­sight role it plays on mu­nic­i­pal­i­ties.

“When it comes to hous­ing projects, the pro­vin­cial hu­man set­tle­ments is sup­posed to over­see the im­ple­men­ta­tion of projects at lo­cal gov­ern­ment level where a lot of waste is hap­pen­ing.

“The premier should en­sure that MECs are per­form­ing the over­sight func­tions,” she said.

Creecy said gov­ern­ment will re-es­tab­lish good gov­er­nance and root out state cap­ture and cor­rup­tion.

She added that the gov­ern­ment would also pro­mote sus­tained and in­clu­sive growth to cre­ate jobs, re­duce in­equal­ity and trans­form our econ­omy.


The Gaut­eng hu­man set­tle­ments depart­ment had ir­reg­u­lar ex­pen­di­ture of R1.2bn, the AG’s re­port said.


MEC Bar­bara Creecy.

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