POLOKWANE – Standing Committee on Public Affairs (Scopa) Chairperson Snowy Kennedy-Monyemoratho and members of the committee had a field day at the expense of the Department of Education when the department appeared before the committee on Tuesday.
The department was congratulated on its improved 2016/17 audit report received from the Auditor-General’s office, but told there were still huge gaps still to address. The accounting officer was taken to task for not taking disciplinary steps against transgressors.
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Like many consequtive years, the hearing was not concluded, but the department was sent back to correct answers supplied that did not speak to questions asked.
The MEC, Ishmael Kgetjepe was taken to task for not having signed off the files as required at the beginning of the hearing.
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An investigation with regards to irregular expenditure in 2014/15 has been concluded but the report was not handed over to Scopa, as the department was still implementing the recommendations in the report and wanted to report back by 31 January 2018. Scopa told the department to submit the report with immediate effect.
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Matters listed in the past three years emerged again in the 2016/17 finacial statements, such as asset management, expenditure management, underspending and material misstatements in the preparation of the financial statements, leading to a qualified opinion from the AG. The department had to give R100 million to the Department of Health, or it would have been underspent.
“This is unacceptable,” Kennedy-Monyemoratho said, “especially as there are a lot of infrastructure repairs needed at schools in the province.”
The AG had the following problems with the department’s financial statements:
- Immovable tangible assets were overstated by R384, 7 million and the AG was unable to determine whether any further adjustments were necessary to buildings and fixed structures of R4 ,7 billion and capital work in progress of R3,6 billion. The value of retentions withheld on capital projects was not disclosed by the department, and stated at R0.
- With the compensation of employees, the AG was not able to obtain sufficient appropriate audit evidence to support allowances amounting to R2,764 billion paid to employees by the department.
- Fruitless and wasteful expenditure amounting to R13,291 million was incurred by the department and effective steps were not taken to prevent this.
- Irregular expenditure, constituting payments made in contravention of supply chain management requirements, amounting to R891 million was incurred. The AG stated that the department did not have adequate systems in place to identify and report on all irregular expenditure incurred. The AG reported that investigations were not conducted into all allegations of financial misconduct committed by officials, as required by Treasury regulation 4.1.1 since 2014/15.
- The department has materially underspent the budget on infrastructure development by R284,4 million, which contributed to an overall underspending of R565,5 million.
- A number of targets in the Annual Performance Plan were not achieved.
- A number of contracts were not awarded in accordance with legislative requirements, without inviting competitive bids, and advertised as per requirements. Investigations emanating from 2015/16 re supply chain matters are still outstanding.
The Scopa Chair said the department will have to appear again before Scopa and a date is to be determined.
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“They take shortcuts and have to be spoonfed. Implementation of resolutions is very slow. They are hiding behind section 100 and 18 interventions. It is not the first time they appear before Scopa, they know what is needed and how answers and documents should be prepared.” There are 361 full time candidates and 29 part time candidates writing the Independent Examinations Board examination in Limpopo.
