NEHAWU statement on the fruitless and wasteful expenditure by National Treasury
10 February 2021
The National Education, Health and Allied Workers’ Union (NEHAWU) notes with serious concern the audit outcomes of the National Treasury.
The audit outcomes released by the Auditor-General, Tsakani Maluleke, reveals that National Treasury has incurred R249 million in irregular expenditure and that the delay in implementing the Integrated Financial Management System (IFMS) caused R66 million in fruitless and wasteful expenditure. Furthermore, the Auditor-general chastised Treasury for spending money outside the guidelines of existing legislation for public finances. She decried the lack of compliance to sound and prudent financial management by Treasury which is responsible for fiscal responsibility and proper use of the public purse. The majority of the irregular expenditure was as a result of non-compliance with supply chain management and contract management processes.
This is a department responsible for supporting efficient and sustainable public financial management that is fundamental to the promotion of economic development, good governance, social progress and raising the standard of living for all South Africans. The Constitution of the Republic (Chapter 13) further mandates the National Treasury to ensure transparency, accountability and sound financial controls in the management of public finances yet it is handled by a person who fails to account for monies spent by his department and failed to be exemplary to other government departments in terms of ensuring that every cent is accounted for.
Furthermore, the Minister of Finance, Tito Mboweni, failed to submit financial statements and Treasury’s annual report on time and asked for an extension from Parliament. This show the bad state that Treasury is in and further highlights Mboweni’s lack of attention to details on fundamental issues.