Not one East Cape department gets a clean audit
PLUS Provincial officials and their families benefited from nearly R1-billion worth of government tenders!
NONE of the provincial government departments and public entities was given a clean bill of health according to the Auditor General’s latest reports.
In fact the financial performance of 14 Eastern Cape departments and nine public entities worsened in the latest round of auditing for 2011-12 compared to the previous financial year.
In the 2010-2011 financial year the legislature and AsgiSA received clean audits.
The latest reports show the departments and entities incurred more than R3-billion in unauthorised and fruitless expenditure for the same financial year.
Eight departments obtained unqualified audits, but with findings. They include the legislature, social development, treasury, local government, safety and liaison, economic development, transport and the Office of the Premier.
The five departments which obtained qualified audit opinions were rural development and agrarian reform, health, sports, roads and public works and human settlement.
- The embattled education department remains in the doldrums after again recording defective financial reporting – meaning the AG could not come to an opinion on its financial statements due to a lack of supporting documentation.
This was revealed when departments and entities tabled their annual reports at a provincial legislature sitting in Humansdorp this week. Reports seen by Avusa Media that show that the education department was the biggest culprit with unauthorised expenditure of R1.45-billion and fruitless expenditure of R58 million.
“Sufficient appropriate audit evidence was not available for compensation of employees expenditure of R20.4-billion,” the report states.
The reports also show that education could not provide sufficient evidence and documentation for goods and services rendered of more than R1-billion.
- The health department incurred R1.2-billion in irregular expenditure and more than R30-million in fruitless expenditure.
- The reports also show that human settlements failed to spend R472-million of their housing conditional grant.
- Irregular expenditure of R38.9-million was incurred by the Office of the Premier.
“This irregular expenditure was incurred as a result of non-compliance with supply chain management legislation and public service regulation,” the report states.
Employees in eight departments did work outside their employment for which they were remunerated.
The provincial legislature failed to spend R27-million of its budget in the year under review.
Sports, recreation, arts and culture failed to spend R29.3-million due to incomplete infrastructure projects, such as libraries and museums and incurred close to R20-million in irregular expenditure.
The provincial government paid more than R100-million to officials who could not be verified on their payroll and employees who did not report for work in the 2010-2011 financial year.
During the 2010-2011 financial year, provincial officials and their families benefited from nearly R1-billion worth of government tenders.
The figures were revealed by national auditor — general (AG) Terrence Nombembe when he presented the province’s departments and entities audit opinion.
Last month the legislature said it wanted disciplinary action taken against officials who flouted the Public Finance Management Act (PFMA), resulting in the provincial government incurring R4.6-billion in irregular expenditure in 2010-2011.
Provincial municipalities in the 2010-11 financial year incurred R2.02-billion in irregular expenditure, while R598-million worth of tenders could not be audited because documents were not available.
Most provincial municipalities depend on consultants to prepare their financial statements which cost more than R24-million.
Provincial spokesman Mxolisi Spondo said the state of financial management in departments continued to be a matter of concern for the provincial government.
“The key challenge is that some departments that improved last year have regressed, some have sustained their good performance and some just fell short of minor things such as providing supporting documentation,” Spondo said.
He said provincial treasury would in the current financial year provide hands-on support to strengthen the financial management capacity of departments.
- Avusa Media