THE Central Energy Fund incurred R1.6-billion in irregular expenditure over the past year - about a quarter of the entire Energy Department's budget.
Briefing parliament's portfolio committee on energy yesterday, Carl Wessels of the auditor-general's office outlined the entire department's R6.5-billion budget. The Central Energy Fund (CEF), under which PetroSA and the Petroleum Agency of South Africa fall, received an unqualified audit with findings.
Most shocking for the committee, however, was the R1.6-billion in irregular expenditure. This is above about R800-million recorded the previous year.
Wessels said about R50-million of the R1.6-billion had been due to a contract being awarded without a competitive tender process, while the remainder was mostly due to non-compliance with the Preferential Procurement Policy Framework implemented in December 2012.
He said it was difficult to say if there was "intent" to take the funds because there was little information available.
But he said "in all of these contracts we checked, something was definitely received".
The committee heard that two investigations were "ongoing" at the CEF, that were launched by former minister Dipuo Peters.
Wessels said these were being handled by the National Prosecuting Authority.
DA MP Lance Greyling said the irregular expenditure figure was "a little bit scary".
"Last year when they were here, they claimed that the irregular expenditure was an accounting discrepancy," he said.
Gordon MacKay, also of the DA, said: "This is a quarter of the department's budget and I don't think we are getting enough information.
"It looks like the CEF needs a talking to, and possibly even a spanking."
ANC MP Risimati Mavunda said the CEF needed to answer.
"They must give answers why they choose to do the wrong things when there are guidelines in place," he said.
The CEF is expected to appear before the committee next week.
Deputy Energy Minister Thembisile Majola told the committee the department was grappling with human resources and financial capacity problems after their split from the Department of Minerals .
"When the departments were split, it was made clear that there was no extra money," she said.
newsdesk@sowetan.co.za
For more stories like this one, be sure to buy the Sowetan newspaper from Mondays to Fridays
Energy fund must answer for R1.6bn irregularities
THE Central Energy Fund incurred R1.6-billion in irregular expenditure over the past year - about a quarter of the entire Energy Department's budget.
Briefing parliament's portfolio committee on energy yesterday, Carl Wessels of the auditor-general's office outlined the entire department's R6.5-billion budget. The Central Energy Fund (CEF), under which PetroSA and the Petroleum Agency of South Africa fall, received an unqualified audit with findings.
Most shocking for the committee, however, was the R1.6-billion in irregular expenditure. This is above about R800-million recorded the previous year.
Wessels said about R50-million of the R1.6-billion had been due to a contract being awarded without a competitive tender process, while the remainder was mostly due to non-compliance with the Preferential Procurement Policy Framework implemented in December 2012.
He said it was difficult to say if there was "intent" to take the funds because there was little information available.
But he said "in all of these contracts we checked, something was definitely received".
The committee heard that two investigations were "ongoing" at the CEF, that were launched by former minister Dipuo Peters.
Wessels said these were being handled by the National Prosecuting Authority.
DA MP Lance Greyling said the irregular expenditure figure was "a little bit scary".
"Last year when they were here, they claimed that the irregular expenditure was an accounting discrepancy," he said.
Gordon MacKay, also of the DA, said: "This is a quarter of the department's budget and I don't think we are getting enough information.
"It looks like the CEF needs a talking to, and possibly even a spanking."
ANC MP Risimati Mavunda said the CEF needed to answer.
"They must give answers why they choose to do the wrong things when there are guidelines in place," he said.
The CEF is expected to appear before the committee next week.
Deputy Energy Minister Thembisile Majola told the committee the department was grappling with human resources and financial capacity problems after their split from the Department of Minerals .
"When the departments were split, it was made clear that there was no extra money," she said.
newsdesk@sowetan.co.za
For more stories like this one, be sure to buy the Sowetan newspaper from Mondays to Fridays
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