Posts Tagged ‘auditor general’

AG Report: DA-run Western Cape ahead of the rest

November 17, 2016

The Auditor General’s (AG) report released today has revealed that the DA-run Western Cape has once again come out on top, for the third consecutive year.

The AG reported that not one Western Cape department received an adverse audit outcome.

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Irregular expenditure has also decreased from R 124 million to R 28 million.

This is in stark contrast to the audit findings from the ANC-run provinces, and where large amounts of irregular expenditure where identified. The worst being:

Mpumalanga – R4 billion was identified as irregular expenditure;
Eastern Cape – R1,2 billion in irregular expenditure;
KwaZulu Natal – R1.8 billion in irregular expenditure; and
Limpopo with R17 million lost to fruitless and wasteful expenditure.

The AG reported that officials lacked the discipline to prepare accurate financial and performance reports throughout the year and also highlighted non-compliance, as well as fruitless, wasteful and irregular expenditure.

This is characteristic of ANC-run governments across the country and is further proof that the ANC cares more about lining cadres’ pockets than the millions of South Africans who are left without access to basic services as a result of perpetual corruption.

The DA will continue to work hard to deliver much-needed services to South Africans where we govern, and we will do so transparently.

Where the DA governs – we govern well

June 3, 2016

Yesterday the Auditor General released his report into municipal management for 2014/15.

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This report again confirmed that DA governments are the best run in South Africa.

According to the Auditor General, the DA-run Western Cape has the highest proportion of municipalities with clean audits with 73%.

This means that our governments spend every cent properly.

We do not waste or steal the people’s money – we make sure we spend it on the people: to create jobs and deliver better services.

According to the AG, only 33% of municipalities in ANC-run Gauteng received clean audits.

In total one in four municipalities are not financially viable.

This means that ANC municipalities cannot deliver the services that people need, or create the jobs that will lift unemployed South Africans out of poverty.

The main cause of this poor governance record is that tenders are awarded to ANC councillors, their friends and family members.

This is not only unfair but it steals opportunities from those most in need.

The ANC, like Jacob Zuma, only care about putting themselves and their friends first.

They don’t care about the 8.9 million jobless South Africans.

It is time to stop this waste of money and corruption and to ensure that the people of South Africa come first.

On 3 August 2016, vote DA for CHANGE that will stop corruption, deliver better services and create jobs.

Where we govern, we are making progress.

We know that there is still much more to do, our record shows that we are bringing positive CHANGE to people’s lives.

Auditor general flags R25.7bn in irregular govt spending

November 26, 2015

There has been irregular expenditure of R 25.7bn across the country’s national and provincial departments and public entities for the 2014-15 year, Auditor General Kimi Makwetu said on Wednesday.

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If there is a silver lining to his office’s general report on national and provincial audit outcomes, it’s that irregular expenditure decreased by 27 % over the previous year’s figure of R 35.28bn.

The report covers a total of 468 auditees, which include 167 national and provincial departments and 301 public entities with a total budget of R 1.1 trn for the year under review.

Some of the biggest culprits were the Gauteng transport department with R1.9bn, the Gauteng human settlements department with R1.9bn, the Mpumalanga health department also with R1.9bn, the SA National Roads Agency Limited (Sanral) with R1.6bn, and the Gauteng education department with R1.7bn.

Fair procurement

Makwetu said one of the findings was that auditees do not follow competitive or fair procurement processes.

He said 31% of auditees had material findings on supply chain management.

“This contributed largely to the irregular expenditure of R25.7bn for this year. This expenditure does not necessarily mean that money was wasted or fraud committed in all instances,” Makwetu said.

“We normally highlight those areas in which deficiencies were observed, and we are required to report on them in order to bring them to the attention of the leadership of the institutions.

“R25.7bn could be at risk if the necessary investigations are not undertaken.”

Decrease in fruitful expenditure

The report found that there was a decrease in fruitless and wasteful expenditure since 2013-14’s figure of R1.2bn, down to R936m.

For the current and previous years, 197 auditees incurred fruitless and wasteful expenditure, of which 151 incurred expenditure for the past three years.

Of the R936m in fruitless and wasteful expenditure for 2014-15, R32m was actually incurred by preventing further fruitless and wasteful expenditure, or losses.

This normally related to the cost of cancelling irregular contracts, or the contracts of non-performers.

Problems in Gauteng

Some of the main contributors to wasteful expenditure was Gauteng’s transport department with R251m, the Gauteng health department with R160m and the Eastern Cape health department with R74m.

Unauthorised expenditure, which is where the expenditure by auditees was not incurred in accordance with an improved budget, decreased from R2.6bn in 2013-14 to R1.6bn in 2014-15.

The main contributors to this figure include the Free State education department with R589m, the national department of transport with R393m and the North West health department with R263m.

News 24

DA lays charges against Kouga Municipality

May 8, 2012

The Democratic Alliance (DA) in Kouga laid charges at the Port Elizabeth Commercial Crime Unit on Monday, 7 May 2012 against officials of Kouga Municipality for the alleged non-payment of pension fund contributions to the three pension funds as prescribed by law.

It is alleged that Kouga owes substantial amounts to the three pensions funds to which its employees subscribe.

It is in contravention with the Pension Funds Act not to pay over the employee contributions on a monthly basis. The responsibilities of the chief financial officer (CFO) and the municipal manager as the accounting officer of the municipality are to abide by the Municipal Finance Management Act (MFMA) and such non-payment could lead to an investigation of financial misconduct.

In addition, reneging on the statutory commitments is extremely serious and the auditor general must also be informed of the circumstances.

The gravity of the outstanding amount, believed to be well in excess of R6 million, has been hidden from the finance portfolio committee as well as from the Kouga Council. The Prevention and Combating of Corrupt Activities Act prescribes that if one does not disclose such serious activities, one could be considered an accomplice in such case.

DA Cllr Ben Rheeder, who has been a trustee since 2000 of the EC 108 Provident Fund for the employees from Humansdorp and St Francis Bay, first noticed the irregularities of pension contributions being deducted, but not paid over to the fund in May 2011. Since then he has had a continuous battle to get Kouga to pay on time. When these contributions are not being made within the seven days after the prescribed period the member or worker loses out on the interest of the size of his retirement or pension fund. Furthermore, employees can also lose out on benefits such a disability and normal group insurance.

Councillor Ben Rheeder is obligated by law to disclose pension fund irregularities

As trustee, Cllr Rheeder is obliged to disclose the non-payments under the Pension Funds Act, the Prevention and Combating of Corrupt Activities Act as well as the MFMA or he could be considered an accomplice.

The DA has been working on this for some time and is most concerned about the effect it (non-payment of contributions) could have on the benefits of the workers.

There is a very good chance that disability claims could be rejected if municipalities like Kouga are in arrears with pension fund contributions.

The DA will leave no stone unturned to protect the rights of the workers.