By OBAKENG MAJE
North West province has incurred R3.7 billion and R3.8 billion in irregular expenditure in 2017/18 and 2018/19 financial years respectively. The startling revelation was announced by the chairperson of the Ad Hoc Committee on the Section 100 Intervention, China Dodovu on Sunday in a statement.
Dodovu said the committee received a briefing from the National Treasury and the Office of the Auditor-General (AG) on the financial position of the province and audit reports since the intervention.
“The committee highlighted that despite the fact that the province incurred R3.7 billion and R3.8 billion in irregular expenditure in 2017/18 and 2018/19 financial years, there is little or no movement in consequence management against those that irregularly awarded contracts outside legislation.
“We are concerned that there is an insignificant movement regarding the consequence management against those that have been identified to have committed financial misconduct in the province,” he said.
He said some of the concerning causes for irregular expenditure are that the Department of Education had issued a tender of R25.4 million that was not evaluated by the evaluation committee and the Department of Public Works and Roads had issued contracts worth R371 million without following proper procurement processes.
“Also, the Office of the Premier had issued a contract worth R19.8 million without a competitive process, and the Department of Health had contracts worth R1.1 billion in which it deviated from competitive processes, and had continued with expired contracts worth R707.8 million.
“Despite the intervention, the committee raised concerns over the continued underspending by the province that impacts directly on the lives of the people of the province. Primarily, the committee is concerned that only R1.5 billion from the R45 billion of the province’s budget is planned for infrastructure development, a major driver of economic development,” said Dodovu.
He further said, as a result, the committee is concerned that a considerable budget is lost to the National Treasury as a result of underspending. Dodovu added that the province lost conditional grants allocations for the Department of Education amounting to R125.373 million in 2018/19 and R225.621 million in 2019/20.
“The Human Settlements department also lost grant allocations amounting to R100 million in 2020/21. The stopping of conditional grant allocations reflects poor planning and delivery on projects within the respective departments.
“Furthermore, the committee highlighted concerns that even the Department of Agriculture is underspending on its conditional grants, in a province that depends on agriculture as a driver of its economic activity. The committee has called on the intervention team to work towards ensuring prudent and maximal spending of budgeted resources,” said Dodovu.
Meanwhile, the committee has called on the Office of the AG to utilise provisions of the Public Audit Amendment Act to recoup some of the losses incurred in the province. Dodovu said the committee has also considered issuing a certificate of debt for suspected material irregularities found during successive negative audits.
“While the committee acknowledges that since the intervention there has been an appreciated downward trend in irregular expenditure from R3.8 billion to R2.6 billion, it has called for consequence management to discipline those in the wrong and safeguard the resources of the state.
“On Monday, the committee will interact with the National Prosecuting Authority, Special Investigating Unit and the Asset Forfeiture Unit to get an update on the causes of delays in prosecuting alleged wrongdoers,” he said.
The Guardian 