POLITICS

GPG's condonement of R9bn in irregular expenditure hampers service delivery – Adriana Randall

DA MPL says this carelessness with taxpayer money is the reason why there is a general lack of trust in government

GPG’s condonement of over R9 billion in irregular expenditure hampers service delivery

10 May 2023

The continuous condonement of irregular expenditure seriously impacts the rendering of services to the residents of Gauteng. Condonement applications received for the 2021/22 financial year for assessment by Gauteng Provincial Treasury’s Irregular Expenditure Committee (IEC) amounts to R9,121 billion. The condonement of irregular expenditure required ex-post facto approval by the Provincial Treasury, especially where condonements were against statutory procurement prescripts.

The following departments and entities applied for condonements that have been returned due to outstanding documents:

- Gauteng Department of Infrastructure Development
- Gauteng Department of Education
- Gauteng Department of Health
- Gauteng Department of Agriculture and Rural Development
- Gauteng Department of Sports, Arts, Culture and Rural Development
- Gauteng Partnership Fund
- Gauteng Liquor Board

This information was revealed in a reply to the DA’s written questions tabled in the Gauteng Provincial Legislature (GPL).

Out of the 29 requests, 21 to the value of R4.808 billion were returned to the departments with reasons ranging from “irregular expenditure treatment process outstanding”, “consequence management outstanding”, and “investigation reports outstanding”. This is a clear indication that there is a severe lack of consequence management and accountability within the Gauteng Provincial Government.

Billions of rands are lost, yet those implicated can walk freely without being held accountable.

Furthermore, a lack of consequence management undermines the Public Finance Management Act (PFMA) and the Constitution. It also diminishes the impact of funds allocated to service delivery and economic growth during a time when the country has been greylisted.

This carelessness with taxpayer money is the reason why there is a general lack of trust in government.

It is critical to keep regulations and legislation clear and simple. This will reduce opportunities for corruption and ensure effective consequence management. The DA proposes that in instances where taxpayers’ money is lost or stolen through irregular and wasteful expenditure, investigations must be fast-tracked. The stolen money must be recovered, and officials found guilty must be blacklisted on a national database.

Issued by Adriana Randall, DA Gauteng Shadow MEC for Finance, 10 May 2023