Education’s failure to discipline officials leads to increased waste and loss that exceeds R500 million

Failure to conduct investigations into allegations of financial misconduct and taking disciplinary steps against relevant officials at the Department of Education seemingly continues to cost the department millions each financial year.
The department’s unauthorised, irregular as well as fruitless and wasteful expenditure have increased over three years with the highest loss amounting to R394 million incurred in 2017/18 financial year. This was revealed by Collins Mangoale from the Office of the Auditor-General (AG) when briefing the Portfolio Committee on Education at Parliamentary Village on Tuesday.
He said he was unable to obtain sufficient appropriate audit evidence that disciplinary steps were taken against officials who had incurred fruitless and wasteful expenditure as required by section 38 of the Public Finance Management Act (PFMA).
Mangoale went on to say this was due to proper and complete records that were not maintained as evidence to support the investigations into irregular and fruitless and wasteful expenditure.
A budgetary review and recommendations report provided by Mangoale revealed that the department incurred unauthorised expenditure amounting to R290 million in the previous financial year, R237 million in 2016/17 while R279 million was incurred in 2016/15.
The department accounts for fruitless and wasteful expenditure amounting to R394 million for the previous financial year, R199 million for 2016/17 and R186 million for 2015/16, he stated. Losses incurred as a result of irregular expenditure amounts to R4,8 million in the previous financial year, R3,9 million in 2016/17 and R3,1 million in 2015/16.
“The most common findings on supply chain management include bids not being advertised as required by Treasury Regulations, employees performing additional remuneration work, and procurement value above R500 000 not going through competitive bidding. The department received a qualified audit opinion with findings for the previous financial year, the same audit in 2016/17 and a disclaimer with findings in 2015/16,” Mangoale said.
The review and monitoring of the financial and performance reporting by the accounting officer is inadequate, he stressed, adding that this resulted in the annual financial statements and performance report containing material misstatements.
He concluded by saying some of the factors adding to financial losses include books not delivered to schools and the department booking accommodations for officials who fail to attend meetings.

Story: ENDY SENYATSI
>>endy@observer.co.za