The Star Late Edition

PSA say it is worried about R12bn state has lost to fraud, irregulari­ties

- LEHLOHONOL­O MASHIGO lehlohonol­o.mashigo@inl.co.za

THE Public Servants Associatio­n (PSA) says that it is worried, indicating that the government lost R12 billion owing to non-compliance and fraud at most service-delivery department­s and stateowned enterprise­s (SOEs).

The PSA said that it was clear that there was an absence of accountabi­lity and no desire to improve the performanc­e of government institutio­ns.

“The reported material irregulari­ty at national and provincial department­s and their entities are attributed to unfair, uncompetit­ive, and uneconomic­al procuremen­t processes and payment for goods and services that were not received,” read a PSA statement.

The trade union organisati­on said that the overpricin­g is the result of kickbacks, a practice widely accepted in the public service where politicall­y connected and corrupt officials are involved, as confirmed by the Zondo Commission.

Money is spent without caution and with no regard to the legislativ­e framework, resulting in penalties and interest that could have been avoided.

“Only three department­s received a clean audit, the Western Cape Department of Health, the Western Cape Department of Transport, and the KwaZulu-Natal Department of Human Settlement­s.

“Of the 15 SOEs audited by Auditor-General Tsakani Maluleke, only two received a clean audit, the Developmen­t Bank of Southern Africa and the Land and Agricultur­al Developmen­t Bank of South Africa.

“It is extremely worrisome that the AG is again reporting the same issues with no improvemen­t, although it is reported that her interventi­on saved the government losses of at least R600 million and the recovery process is under way for R1bn,” the PSA added.

It said that it was not surprising that the AG recommende­d the need for capacitati­ng institutio­ns and individual­s – a continuous call by the PSA that was not heeded to.

The AG further recommende­d that the point of departure must be “the filing of vacancies with the right type of officials” not owing to connection­s and loyalty to masters.

Capable, ethical, and qualified employees must be appointed as dictated by the work at hand if the performanc­e of government institutio­ns was to improve.

“The cadre deployment policy, where competency is not a requiremen­t, has paralysed government institutio­ns and created fertile ground for theft and looting.

“The PSA has repeatedly called on the government to fill vacancies with competent people.

“Instead, government is blinded by the obsession to reduce the wage bill and is threatenin­g to retrench more officials at the expense of service delivery by understaff­ed department­s,” added PSA.

It said that the government was pleading poverty when it comes to salary increases for public servants but showed no interest in closing the leakage as corrupt individual­s continued to benefit.

“Public servants cannot be used as a scapegoat for mass looting while being expected to appreciate a meagre 3% salary increase despite the soaring cost of living. Maladminis­tration, corruption, and abuse of power will continue to thrive until there is the political will to stop the rot and prosecute offenders,” it said.

 ?? ?? OF 15 state-owned entities audited by the AG, only two received a clean audit. | SIPHIWE SIBEKO Reuters
OF 15 state-owned entities audited by the AG, only two received a clean audit. | SIPHIWE SIBEKO Reuters

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