Billions dished out to government officials’ cronies, families

POLOKWANE – Tenders awarded to councillors, employees, their close families and persons employed by the state with a conflict of interest, according to the Limpopo Auditor-General’s (AG) 2013/14 financial year audits of statements of local government, amounted to R119 million for the year under review.

Included in this amount were awards to the value of R116 million to employees, councillors and other state officials and awards to the value of R3 million made in favour of close family members of the councillors and employees.

Persons with conflicts of interest may unfairly influence the outcomes of awards in favour of a particular supplier and in the above tenders, according to the AG, Kimi Makwetu.

“The supply chain management (SCM) transgressions that give rise to irregular expenditure are driven by conflicts of interest and non-adherence to SCM controls. These transgressions are characterised by the political and administrative leadership not leading by example and or not setting a tone that results in a low tolerance for deviations from controls (a lack of consequences for transgressions).”

Makwetu said virtually all irregular expenditure incurred (99%) was the result of non-adherence to SCM prescripts.

“During the audit of compliance with SCM legislation, we tested awards of 816 contracts with an approximate value of R2,3 billion as well as 1 887 quotations with a value of R90 million.”

He said no municipality adhered to all SCM legal prescripts.

“Although the number of auditees where material compliance findings were reported decreased, irregular expenditure remains at high levels. The decrease in irregular expenditure, although significant, comes against the backdrop of underspending of R827 million in infrastructure grants.”