No steps taken to stop rot
A-G slams department for continued irregular expenditure, bypassing supply processes
AUDITOR-GENERAL Kimi Makwetu has slammed the Basic Education Department for failing once again to prevent “significant control deficiencies” in its infrastructure programme – despite negative audit findings on the matter over past years.
In his audit report tabled in Parliament last week, Makwetu said the department recorded R154 million in irregular expenditure in the 2017/18 financial year after supply chain processes were not followed.
“Effective and appropriate steps were not taken to prevent irregular expenditure amounting to R154478000 as required by sections of Public Finance Management Act and Treasury regulations. The majority of the irregular expenditure was caused by the appointment of implementing agents,” Makwetu said, in reference to deviations from competitive bidding processes.
Payments were made to agencies such as Coega Eastern Cape, Mvula Trust, Independent Development Trust, Adopt-A-School, Mhlathuze Water, the Development Bank of Southern Africa and TCN Architects, among others, from as far back as 2012.
The amount is likely to increase, as another R33 million in irregular expenditure was still under investigation.
The department has also disclosed that R83 million in fruitless and wasteful expenditure was still under investigation.
The auditor-general said he identified “significant control deficiencies” in the oversight function by the department on the infrastructure programme.
“The control deficiencies relating to the infrastructure programme have been reported over the past years, but have not been adequately addressed.”
Matanzima Mweli, the department’s director-general, said one of the contracts awarded to four implementing agents in 2012 was because the volume of tenders received would have taken the department a long time to complete the process of evaluating them.
“This was done to ensure that there was a fair spread of allocation of contracts,” Mweli said.
He said in another tender awarded to SAB&T, appointed to manage the Kha Ri Gude programme in 2015/16, one of the stages of evaluation was misinterpreted when site visits should have been done with all bidders.
He added that implementing agents appointed to build schools did not comply with supply chain processes as agreed under the memorandum of agreement signed with the department.
“When contractors who were underperforming or liquidated were identified, the implementing agents did not follow the supply chain management process when replacing them,” Mweli said.