THE DA in Limpopo has called on MEC for Education Namane Masemola to investigate allegations of mismanagement of more than R600million.

The shocking discovery was made by the Auditor-General during the release of the 2008-9 annual report for the Department of Education last week.

It paints a bleak picture about the department's state of management of its funds this financial year.

According to the report, movable and immovable tangible assets to the value of R136,3million could not be verified by the department.

The department also failed to verify a further R43,2million for the compensation of employees.

The department was unable to present proof for the loss of R32,6million which was listed in the compensation of employees.

It also failed to produce proof of R493,7million that was allegedly used for the procurement of goods and services.

The DA has called on Masemola to take urgent action.

The party said the findings did not seem to amaze given the fact that the DoE was recently found by the AG to be the biggest offender in the report entitled "Audit of entities connected to government employees who are doing business with the departments of the Limpopo Provincial Administration".

Meissie Kennedy, a member of the Limpopo Legislature, said the AG also found that 484 departmental employees were directors or members of 777 companies that did business with other state departments.

Kennedy said the AG's report further indicated that these employees have collected more than R64million from the state.

She said the department was failing to carry out its functions because it was somehow understaffed.