Lesufi's leadership fails as Gauteng's R43 billion irregular expenditure crisis deepens
23 October 2024
Premier Panyaza Lesufi must urgently address, not only the growing allegations of withholding damning forensic reports from public scrutiny, but also his failure to provide proper oversight in Gauteng’s government departments. As the province’s Executive, Lesufi is responsible for ensuring that government officials are held accountable for their performance and that departments are effectively managed to prevent the misuse of public funds.
The lack of accountability under his leadership has contributed to Gauteng's financial and administrative instability. This continued inaction has deepened the province's governance crisis, and the people of Gauteng deserve answers.
The best indicator of a department’s financial and administrative health is irregular expenditure, which refers to transactions carried out in contravention of legislation or policies. These violations, particularly in procurement, where laws around service provider selection or pricing are flouted, serve as red flags for potential corruption.
The consequences of these lapses are severe: they undermine financial accountability and governance, compromise service delivery, and increase the risk of corruption, potentially resulting in financial losses.
Gauteng’s administration is on a downward spiral, evidenced by the staggering balance of irregular expenditure, which reached R43.31 billion by the end of March this year. The worst offenders include:
- Department of Health: R27.24 billion
- Human Settlements: R6.85 billion
- Education: R4.14 billion
- Infrastructure Development: R2.30 billion
- Social Development: R1.02 billion
- Sports, Arts and Culture: R703.8 million
- Roads and Transport: R655.4 million
Each Head of Department (HoD), who serves as the Accounting Officer, is responsible for managing irregular expenditure. This involves assessing whether the transaction qualifies as irregular, investigating any potential fraud or corruption, and ensuring that the irregular expenditure is either condoned, recovered, or written off. Additionally, the Public Finance Management Act (PFMA) requires that officials responsible for the irregular transaction must undergo disciplinary action, and a criminal case must be opened if fraud or corruption is detected.
However, most Accounting Officers have ignored these responsibilities, resulting in unresolved irregular expenditure remaining on the books for up to eight years.
The Premier and the relevant MECs have an oversight responsibility under the PFMA and Treasury Regulations, which they have similarly abdicated. Premier Lesufi and his MECs must explain why they have failed to implement accountability mechanisms, why disciplinary processes are not being followed, and why no consequence management is meted out.
The DA would ensure the appointment of competent people who are properly trained and who are held to account. The oversight function of politicians would be diligently and robustly carried out, while consequence management, in a fair and balanced manner, would be implemented.
For too long, officials have acted with impunity and escaped the consequences. It is time to use the law to ensure compliance by errant officials.
Issued by Alan Fuchs, DA Gauteng Member of the SCOPA, 23 October 2024
