Irregular state expenditure jumps 62%

| 0 Comments
Irregular_Expenditure.jpgGovernment spent R26,4-billion in 2010 in ways that contravened laws and regulations, BusinessDay reports.

The national and provincial governments and their entities notched up R21-billion in irregular expenditure last year, a 62% rise over the previous year’s R13-billion, with unauthorised expenditure adding a further R3,8-billion (R8,9-billion), and fruitless and wasteful expenditure an extra R1,5-billion (R500-million).

The Department of Health on its own contributed R5-billion, or 25%, of the R21-billion in irregular spending.

Kimi_Makwetu.jpgDeputy auditor-general Kimi Makwetu highlighted weaknesses in supply chain management, controls over information technology, human resource management, capital assets and performance reporting during a briefing to Parliament’s standing committee on public accounts (Scopa) on 19 October.

There were no clean audits in the big-spending departments of health, education and public works, which showed a deterioration in their financial management.

The deterioration was "disappointing", Scopa chairman Themba Godi said, especially in light of the considerable efforts to improve matters. "It is a worry that we are not making as fast and as good progress as we would want," he said.

"They need to jack up their act and act with a sense of urgency, firmness and decisiveness."

Accountant-general Freeman Nomvalo countered that there had been strong improvements in some departments, such as the Department of Home Affairs and the Department of Correctional Services, with the overall outcome "patchy" rather than a deterioration.

A sign of the deterioration at national level was that of the 39 departments only 8% received unqualified audits or "clean" opinions with no findings, a progressive decline from 16% in 2008-09 and 12% in 2009-10.

Three percent received a disclaimer or adverse opinion for the first time in three years.

The Department of Environmental Affairs, Department of Public Enterprises and Department of Science and Technology were the stars, all getting clean audits.

On the other hand, 67% of national departments received unqualified audit reports with findings relating to the weaknesses in their internal controls and financial management systems, compared with 53% in 2009-10 and 42% in 2008-09. Qualified audit reports declined over the last three years, from 42% to 22% last year.

Provincial departments showed a decline in disclaimers and adverse opinions from 8% in 2008 -09 to 4% last year. Unqualified reports with no findings declined from 17% to 13% in this period, while unqualified reports with findings dropped to 55% from 56%. Qualified audit reports rose to 28%, from 19% the previous year.

Scopa heard that the Department of Defence had gone a long way in improving its financial management, though the Department of Water Affairs faced "enormous challenges" with regard to the water trading entity. Departments which received worse audit opinions than last year were the Department of Traditional Affairs, Department of Health and Department of Public Works, which received a disclaimer.

Democratic Alliance spokesman on public accounts Anchen Dreyer called on President Jacob Zuma to take "appropriate action" against the offending accounting officers and recover money wherever possible. She said financial management at national level had worsened.

BusinessDay

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Salary: R 600 000 - R 650 000 ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
R600 000 - R700 000 per annum Location: ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
R850 000 - R1 000 000 per annumLocation: ...More

Commodity Manager

  • <500 000 Commodities Permanent Procurement Management Western Cape
R700 000 - R850 000 per annum,Location: Western ...More

National Supply Chain Manager

  • <500 000 Across borders Permanent Procurement Management Supply Chain
R750 000 - R1 000 000 per annum,Location: ...More

Industrial Engineer

  • <500 000 >500 000 Industrial Engineer Operations, Planning & Inventory Permanent Western Cape
R450 000- R500 000 CTC per annum,Location: Western ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Management
Category: Procurement,Salary: R700 000 - R800 000 per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Category: Consulting,Salary: R750 000 - R800 000 CTC ...More

Logistics Manager

  • <500 000 Across borders Logistics & Warehousing Permanent Procurement Management
Category: Logistics,Salary: R900 000 - R1 000 000 ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
Area of Specialisation: Planning,Salary: R500 000 - R650 ...More

Industrial Engineer

  • <500 000 Analyst Gauteng Industrial Engineer Permanent
R800 000 - R850 000 CTC per annum.Location: ...More

Security Manager

  • <500 000 Analyst Gauteng Permanent Procurement Officer / Specialist
(Total Cost to Company R350K - R550K).This is ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Projects / Category Management
(Total Cost to Company R650k - R750k) excluding

Commodity Manager Raw Materials

  • <500 000 Commodities Gauteng Permanent Strategic Sourcing
(Total Cost to Company R980k - R800k) excluding ...More

Commodity Manager Logistics

  • <500 000 Commodities Gauteng Logistics & Warehousing Permanent
(Total Cost to Company R1mil - R900k).Industry: Engineering

Procurement Consultant

  • <500 000 Gauteng Permanent Procurement Consultant Procurement Management
(Total Cost To Company 550K - 450K) includes ...More