On Wednesday, 18 November 2015, the North West Provincial Legislature’s Standing Committee on Provincial Public Accounts led by Hon. Mahlakeng Mahlakeng has requested the Department of Public Works and Roads to investigate irregular expenditure of R2,4 billion incurred in the previous financial years and to address issues of consequence management.

This came after the Committee held a public hearing on the Public Finance Management Act audit outcomes of the financial year 2014/15 with the department.

In the year under review, the department received a qualified audit opinion with matters of emphasis on movable tangible capital assets, irregular expenditure and commitments. According to a Senior Manager in the Office of the Auditor General, Mr. Pieter Maritz, key issues on the audit report for the department includes lack of proper project and contract management systems which ensures that projects are adequately managed with qualified personnel.

“The department has a serious problem of record management and regular updating of irregular; fruitless; unauthorised and wasteful expenditure registers. Prior years audit findings are not dealt with as per rules and regulations of the Public Finance Management Act,” said Mr. Maritz.

Standing Committee on Provincial Public Accounts (SCOPA) Chairperson, Hon. Mahlakeng Mahlakeng said the Committee is worried that the department did not investigate unauthorised expenditure as per prescripts of the PFMA.

“We are extremely concerned with how the department run its business in relation to unauthorised expenditure as it opted to unlawfully condone it through the Provincial Treasury and the dysfunctionality of the contract and record management units. We cannot have a key unit such as contracts management which does not have permanent and proper qualified personnel and not well managed in such a department.

“Overcommitted funds which are not appropriated has compromised service delivery in the coming financial years and road projects in Kagisano-Molopo Local Municipality had to be stopped due to lack of funds,” said Hon. Mahlakeng.

MEC for the department, Madoda Sambatha said the Department of Finance, Economy and Enterprise Development has conducted a forensic investigation in the Department of Public Works and Roads.

“Some of the issues on the investigations were irregular expenditure and overcommitted funds which were never appropriated. The department has appointed consultants to conduct a provincial immovable asset verification. The department is currently in the process of appointing relevant personnel in the contract management unit which is located in the chief financial officer’s unit.

“The department with the help of Department of Culture, Arts and Traditional Affairs has appointed an archivist and personnel who will manage the records management unit. EXCO has also taken a decision to centralise planning and procurement of infrastructure projects,” said MEC Sambatha.

Hon. Mahlakeng said the department should submit a comprehensive report on cellphone expenditure incurred on suspended officials; consequence management on fruitless, wasteful and unauthorised expenditure and a detailed action plan on addressing audit report findings.

For more information contact:

Namhla Luhabe

Cell: 079 527 0628

SOURCE: SOUTH AFRICAN OFFICAL NEWS