Edu Department to return R702m in equitable share
The Department is also set to return R107 million of conditional grants to National Treasury due to underspending
POLOKWANE – The underspending in equitable share occurred in critical programmes such as Early Childhood Development (ECD), infrastructure development, examination and education related services, and compensation of employees, DA Provincial Leader, Jacques Smalle, said.
“The DA believes conditional grants have a purpose and are meant to help provinces implement specific national priorities.
The shambolic state of education in Limpopo is symptomatic of the severe underspending of conditional grants on projects like maths, science, and technology by 18,8%, education infrastructure grant by 6,7% and the HIV/aids (lifeskills) grant by 29,5%.”
It also came to light during the meeting that a deposit of R203 million into the account of the Development Bank of Southern Africa (DBSA) by the department, followed by another R200 million on 31 March, a few hours before the 2016/2017 financial year came to an end.
He said this was done following a request by the Minister of Basic Education, Angie Motshekga, on 10 February to avoid it reflecting on the financial statement after the Department of Public Works failed to spend its R1 billion infrastructure budget to build schools. DBSA was brought in as the third service provider to alleviate pressure and to assist the Mvula Trust and the Independent Development Trust (IDT) to avoid a possible R500 million underspend.
“The DA noted with great concern the dumping of R403 million by the Department of Education into the account of DBSA. This was done to avoid the underspending being evident in the financial report of 16/17. However, the department has not been able to clarify what work has been performed by DBSA,” Smalle said, adding that, notwithstanding the fiscal dumping, the department still underspent R67,4 million on their infrastructure grant programme in 2016/17.
“The DA believes the department should have applied for a rollover of funds with regards to their underspend in line with Treasury regulations and will approach the Auditor General, the National and Provincial Treasury to investigate the possibility of irregular procedures in these transactions by Minister Motshekga, the Department of Basic Education and the Limpopo Treasury.”
Department of Education Spokesperson, Dr Naledzani Rasila, said he had no knowledge of the transactions. No comment had been received from the Department of Basic Education Spokesperson, Elijah Mhlanga, by the time of going to print.
