Call to probe irregular expenditure
Makwetu highlights increase in corruption
THE Auditor-General, Kimi Makwetu, has called for investigations into the rise of irregular expenditure.
Appearing before Parliament’s joint committees on appropriations and public accounts yesterday, he said the fact that irregular expenditure in national and provincial departments rose to R61billion from R50bn in the previous financial year, was reason to call for a probe.
MPs said there had been a lack of action in the conduct of senior officials on how they made use of money.
Makwetu confirmed his new powers in terms of the Public Audit Act that would enable him to deal with errant departments.
He said his office had started implementing the new act in just 14 departments. This would be rolled out to 89 entities next year.
However, good news was they had found that most of the departments and state-owned entities were co-operating.
The law requires that he must issue a certificate of debt to a head of an errant department if the head failed to act against corruption. And the head of department or accounting officer would have to implement his recommendations within three months.
“After three months that recommendation becomes remedial action to the accounting officer… If that is not implemented, we issue a certificate of debt to the accounting officer,” said Makwetu.
He said supply chain management was fertile ground for irregular expenditure, which was why they wanted probes conducted into irregular expenditure.
Makwetu also expressed concern about the failure by state-owned entities (SOEs) to submit financial statements.
He said SAA had not submitted its financial statements for two years, 2018 and 2019. This was mainly due to the cash crunch at the airline.
SAA was recently given a bailout of R5.5bn by the National Treasury.
Makwetu said he was also concerned about bailouts given to Eskom.
Finance Minister Tito Mboweni has said no SOE would get a bailout without the appointment of a chief reorganisation officer.
The chief reorganisation officer for Eskom has already been appointed to deal with its massive debt of R440bn.
Scopa chairperson Mkhuleko Hlengwa said internal auditors of departments and SOEs needed to pick up problems early, as this would minimise irregular expenditure.
Sisisi Tolashe of the ANC said if there had been appropriate action, the National Treasury would not have given Eskom a bailout of R59bn this week. He added that MPs should now look at quarterly reports of entities to prevent irregular expenditure.
Ntombovuyo Mente of the EFF said there was a need for intervention before the situation got out of hand.