Cape Town - The provincial treasury is getting tougher on individuals in provincial government departments and entities who are found to be responsible for instances of irregular expenditure.
This emerged during briefings to the legislature’s budget committee by the provincial treasury and the auditor-general (AG), where it was revealed that 92% of all provincial departments and public entities have earned the prestigious status of receiving unqualified audits.
ANC provincial finance and economic opportunities spokesperson Nomi Nkondlo had asked about the main reason behind instances of irregular expenditure in the provincial Human Settlements department of R180 million that appeared to have been repeated for three years in a row.
“The report says the situations were not brought about by inadequate consequence management, so then what is the root cause?
“The way it is being presented to us here, is as if it is a non-issue,” said Nkondlo.
Provincial accountant general Aziz Hardien said the departments were in the process of dealing with their irregular expenditure balances and that the national Treasury has delegated the condonement of irregular expenditure to the provincial one.
“A department that submits a request to the provincial Treasury for condonement has to assert to the condonation committee that consequence management has occurred. If it has not happened provincial Treasury will not even look at that submission.
“So with every submission the department has to confirm the individual responsible for the irregular expenditure or the decision that resulted in its occurrence and there has to be a demonstration that consequence management has occurred.
“This can vary from a disciplinary hearing to a letter from the head of the department indicating that the individual has been disciplined for the action,” said Hardien.
In total, 76% of all departments and entities received a clean audit, including the Health Department for the third year running, while 16% received unqualified audits with findings.
Committee chairperson Deidré Baartman (DA) said: “The AG has not found any intervention necessary for the Province, and the Gambling and Racing Board has been able to achieve its first clean audit since the start of term.
“Similarly, the department of Social Development has regained its 2018/19 outcome by again achieving a clean audit with no findings,” said Baartman.