The Standing Committee on Public Accounts (Scopa) during the Department of Education’s public hearing at Parliamentary Village last Thursday learnt that the institution had the highest irregular expenditure in the province and country. According to information made available to Polokwane Observer, the department incurred R192 904 000 in unauthorised expenditure in the 2017/18 financial year.
The department appeared before the committee to account for the 2017/18 and 2018/19 financial years. It was reported that Department Head of Department Beauty Mutheiwana informed the committee that the department took a decision to pay for infrastructure to the Development Bank of South Africa. It was to pay the contractors on behalf of the department since the department’s employees had embarked on industrial action, Mutheiwana added.
Furthermore, the committee also identified fruitless and wasteful expenditure amounting to
R194 450 000 during 2018/19 financial year. In her response, Mutheiwana told Scopa members that this was due to excess textbooks to the tune of R193 642 000 during the tenure of Section 100 1(b) and R808 000 was as a result of interest charged on accounts for services by various service providers which include municipalities and Eskom. It was further reported that the department also had to account for the procurement of goods and services of transaction cost above R500 000 without inviting competitive bids as required by treasury regulations. The department allegedly shifted the blame to the implementing agent – Mvula Trust, which was responsible for requesting quotations for varying projects. The combined cost of the projects was R4,8 million although appointment letters were issued per project, it was learnt.
Scopa warned the department to guard against malicious compliance when it responds to committee questions as this was the department’s second appearance due to their failure to respond adequately to questions in October. The department was further instructed to take stern measures for consequence management on wrongdoing. Scopa has raised concern on why the department failed to put control measures in place to avoid unauthorised, irregular, fruitless and wasteful expenditures plus consequence management.
The committee recommended that adequate controls be implemented for supply chain management compliance, implement consequence management, review financial and performance reports before submission for audit and provide training where there is lack of skills. The department was ordered to submit investigation reports on scholar transport, unwanted expenditure and the national school nutrition programme by Tuesday. The reports were also expect to contain ways the department intends to use to improve its performances.
Story: ENDY SENYATSI
>>endy@observer.co.za
