Billions of Rands wasted by NWPG with no consequences for the culprits
31 August 2016
The complete lack of consequence management of senior officials in the North West provincial government needs to be dealt with swiftly. The Provincial government must give effect to the prescripts of the PFMA and appropriately sanction any and all officials found to be complicit in the public waste.
The North West Provincial Legislature’s Standing Committee on Provincial Public Accounts engaged with the office of the Auditor-General and relevant responsible senior officials on Unauthorised, Fruitless and Wasteful Expenditure during the 2014/2015, as well as previous financial years.
It was clear that there is no implementation of consequence management and implementation of the committees' resolutions on these issues.
Irregular Expenditure of R13 billion that accumulated from previous financial years till 2014/2015 have not been resolved.
North West incurred Irregular Expenditure of R2 billion in the 2014/2015 financial year, taking the first spot for the province with the most Irregular Expenditure in the country.
The Auditor-General’s preliminary report indicates an increase of another R1 billion for the 2015/2016 financial year.
In a province that has an equitable share of approximately R25 billion, it is a crime against our suffering communities that more than 10% of this is loss due to shoddy work and alleged corrupt tendencies.
Some of the biggest culprits include the Department of Public Works and Roads, the Department of Health and the Department of Education and Sports Development.
In 2015 these Departments were placed under administration ensuring co-management of their finances. Given their performance, this intervention had no positive impact whatsoever.
It became apparent that Departments simply dismiss supply chain management legislation and Treasury Regulations.
While residents in the North West are unemployed, have limited services and opportunities the NWPG succeeded to take Fruitless and Wasteful Expenditure of R28 million in the previous book year to R41 million to the 2014/2015 financial year.
Due to carelessness North West lost R69 million over two years, money that could have been used to improve the quality of services to our people.
The reports of these HoDs and CEOs on Unauthorised, Irregular, and Fruitless and Wasteful Expenditure points to complete abdication of their responsibilities as set out in the Public Finance Management Act.
This Act requires that charges of financial misconduct be investigated against these HoDs and CEO’s.
Those found guilty of financial misconduct are liable on conviction to a fine, or to imprisonment for a period not exceeding five years.
Every year the Auditor-General reports that there is lack of consequences for poor performance and transgressions in this province. No one is taking responsibility for the loss of billions and no laws are enforced to recover the money.
The DA will be looking forward to feedback on the implementation of each resolution to be submitted by these departments and explanation of these transgressions as well as motivations on why charges should not be preferred against these bureaucrats.
Clean governance is a key requirement for service delivery, economic growth, and job creation.
Issued by Joe McGluwa, DA NW Leader, 31 August 2016
