Concern over non-payment of service providers, R600 million accruals

Issues discussed at last Wedneday’s Executive Council (Exco) meeting included the non-payment of service providers within 30 days, findings of the forensic investigations on allegations of irregularities pertaining to payments and procurement processes conducted at Modimolle-Mookgophong Municipality and accruals at the Department of Health.
During the post-Exco media briefing a day after the meeting, Dickson Masemola, Transport and Community Safety MEC and Exco spokesperson indicated that the audit committee was concerned about the huge amounts of accruals and payables of approximately R600 million in the Department of Health. He explained that there was a serious need for re-engineering to be undertaken at the department so as to deal with the root causes that result in continued accruals.
It was learnt that the department spends 74% of its total budget on compensation of employees while only 26% goes to goods and services.
According to Premier Stan Mathabatha, the department has been instructed to conduct a sensitivity study to find suitable solutions to the problem. Education MEC Polly Boshielo who was part of the briefing session indicated that her office spends 81% of their total budget on salaries.

She informed that some of the actions they were undertaking included the improvement of information and communication technology and providing learners with tablets to do away with hard copy textbooks.
On the 30-day invoice payments rule, Masemola stated that a report presented by Provincial Treasury for April 2019/20 financial year revealed that a cumulative total of 505 invoices older than 30 days had not yet been paid by Education (45), Health (381), Transport (64) and Sport, Arts and Culture (15 invoices). He added that they have instructed all affected departments to take corrective measures against the responsible officials.
When tackling the issue of findings of the forensic investigation at the Modimolle-Mookgophong Municipality, Masemola said: “A memorandum providing a report on the allegations was presented and the Exco directed that the MEC for Transport and Community Safety, together with the legal services unit in the Office of the Premier should interrogate the report and where necessary law enforcement agencies should be roped in to proceed with the investigations where acts of criminality are suspected.”
He further clarified that the report was not yet available for public consumption until all the relevant stakeholders conclude interrogating the document. The matter was long overdue and would be dealt with in the blink of an eye, Masemola reckoned and concluded by saying they wanted to see arrests and successful convictions.

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