THE National Youth Development Agency may never recover R161-million of the loans it granted aspiring entrepreneurs.
In its report to Parliament on the NYDA, the Auditor-General's office also casts doubt on the agency's ability to recoup the millions.
The above figure includes R28-million which was spent on travel and other expenses.
NYDA chief executive Steven Ngubeni said that the agency would pursue loan defaulters.
Ngubeni claimed that the agency was in the process of taking legal steps against defaulters because they had failed to give "valid" reasons for not being able to repay their loans.
The A-G's report - for the financial year ending July 31 - does not reveal when the money was loaned out.
As a result, the A-G has listed the staggering sum of money as an impairment.
This revelation comes in the wake of embarrassing details of hundreds of millions of rands which have been incurred irregularly.
Ngubeni also defended some of the A-G's findings. He said the expenditure "is part of the legacy we inherited from Umsobomvu Youth Fund" - a predecessor of the NYDA.
The A-G has taken the agency to task for failing to adhere to supply chain management processes. More than R133-million was found to have been incurred "as a result of non-compliance with supply chain management prescripts as determined by the National Treasury".
Despite criticising the agency's management for not having exercised adequate oversight, the A-G awarded the NYDA its third successive unqualified opinion - meaning the agency "presented fairly, in all material respects, the financial position of the NYDA".
- molatlhwao@sowetan.co.za
This article was first published in print on 28 September 2012
.
A-G slams NYDA over unpaid loans
THE National Youth Development Agency may never recover R161-million of the loans it granted aspiring entrepreneurs.
In its report to Parliament on the NYDA, the Auditor-General's office also casts doubt on the agency's ability to recoup the millions.
The above figure includes R28-million which was spent on travel and other expenses.
NYDA chief executive Steven Ngubeni said that the agency would pursue loan defaulters.
Ngubeni claimed that the agency was in the process of taking legal steps against defaulters because they had failed to give "valid" reasons for not being able to repay their loans.
The A-G's report - for the financial year ending July 31 - does not reveal when the money was loaned out.
As a result, the A-G has listed the staggering sum of money as an impairment.
This revelation comes in the wake of embarrassing details of hundreds of millions of rands which have been incurred irregularly.
Ngubeni also defended some of the A-G's findings. He said the expenditure "is part of the legacy we inherited from Umsobomvu Youth Fund" - a predecessor of the NYDA.
The A-G has taken the agency to task for failing to adhere to supply chain management processes. More than R133-million was found to have been incurred "as a result of non-compliance with supply chain management prescripts as determined by the National Treasury".
Despite criticising the agency's management for not having exercised adequate oversight, the A-G awarded the NYDA its third successive unqualified opinion - meaning the agency "presented fairly, in all material respects, the financial position of the NYDA".
- molatlhwao@sowetan.co.za
This article was first published in print on 28 September 2012
.
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