A plea has gone out to Eastern Cape premier, Phumulo Masualle, to take action against those department heads who are ultimately responsible for irregular expenditure which is sucking billions out of the provincial coffers.
The plea comes from Max Mhlathi, the Chairperson of the Bhisho Legislature's Standing Committee on Public Accounts, following another damning audit report by the Auditor General Kimi Makwetu.
One of the findings was of irregular expenditure totaling some R1.43bn in the 2014/2015 financial year, primarily caused by the Departments of Education, Health and Roads and Public Works which combined consume 77% of the province's total budget.
The AG also called for political leadership in enforcing compliance with the law and consequences for those responsible.
However according to Mhlathi, this was not happening. He agreed that the buck stops with the Premier and his executive.
"We are pleading with the Premier as the head of the Executive to enforce consequence management within the Departments in the Eastern Cape,because it is now over nine years talking about the same issues, same findings (of) irregular expenditure and these Departments, which are having these problems, are the main consumers of the budget of the Eastern Cape" he said.
Mhlathi said that year in and year out, after audit reports, Departments come up with turn-around plans which he said were never implemented.
He told Algoa FM News that if disciplinary action is enforced then the Eastern Cape should not be having the same issues year after year.
Mhlathi added that the Heads of the various Departments were not applying provisions of the Public Finance Management Act which states disciplinary action must be taken against any officer who undermines the internal controls of the Department or who allows for irregular expenditure.
"Because, once those issues appear year in and year out it means that there is a lack of leadership in the administration of the Departments because those people who are heading the Departments are not applying the provisions of the Public Finance Management Act because the Act is there, it provides in Section 38, that whenever there is an officer who does an act that undermines the internal controls of the Department or who allows for irregular expenditure etc, there must be disciplinary action."he said.
The Scopa chairperson also said that even though irregular expenditure in the last financial year, at R1.43 bn was down from the R2.4 bn in the previous book year, the Public Finance Management Act is clear on this point. For him, irregular expenditure is directly linked to corruption.
"There is no issue of reduction, the Act does not say the accounting office must reduce irregular expenditure, but says person must prevent the occurrence of irregular expenditure. In the Eastern Cape most of the irregular expenditure pertains to procurement."he said.
"Once you have irregular expenditure which pertains to procurement it means there is corruption. We are saying even here in the Eastern Cape, we have said it last year and this year that irregular expenditure is part of corruption and if there are no consequences where we are going year in and year out having these reports of irregular expenditure. If the Premier and his Administration does not put disciplinary action in the Departments which are responsible for this, were are going to have it year in and year out."Mhlathi added.
Mhlathi said an audit-turn around plan has not been effective, as it promises to address the same issues every year.
" Departments have got internal audit committees who advise the Department on the control measures but at the end of the year when the auditors come they make findings on the same issues that they (advisors) had warned about."he said.
