DA calls for probe into appointments of underqualified government CFO’s
In a reply to a DA parliamentary question, the Minister of Finance, Nhlanhla Nene, revealed that the Chief Financial Officers (CFO’s) in the Departments of Arts and Culture and Public Enterprises do not possess the necessary formal, finance related qualifications required by Treasury Regulations and the Public Finance Management Act (PFMA).
While Minister Nene stated that it is essential for a CFO to possess formal qualifications which include subjects related to Financial Accounting, Management Accounting, Internal Auditing, and Supply Chain Management, the CFO’s in the Departments of Arts and Culture and Public Enterprises only possess a Matric (Grade 12).
In terms of section 7(b) of the Public Service Act, the recruitment, appointment, performance management, transfer and dismissal of employees of any department is vested in the Executive Authority.
I will therefore write to the Minister of Arts and Culture, Nathi Mthethwa, and the Minister of Public Enterprises, Lynne Brown, requesting two separate probes into these appointments, to establish why these CFO’s were appointed in the first place.
In addition to this, the Minister admitted that a further 8 national government department CFO’s failed to provide information regarding their qualifications, leaving the question open as to whether they too do not possess the required qualifications.
During the 2012/2013 financial year, National Treasury conducted a survey to determine the qualifications of CFO’s in 40 national departments that were in existence at the time. A total of 30 CFO’s were in possession of relevant finance related qualifications (degree or diploma), 2 did not have the requisite qualifications, and 8 failed to provide information in terms of their qualifications.
I will therefore be submitting a series of parliamentary questions to clarify whether these 8 CFO’s are indeed suitably qualified.
South Africa is fast approaching its fiscal cliff. Now more than ever we cannot have senior officials in government tasked with managing billions of rands lacking the required qualifications.
Statement issued by Malcolm Figg, DA member of Finance Portfolio Committee, April 23 2015
