The National Youth Development Agency (NYDA), has noted with concern on-going negative and distorted coverage of the NYDA financials following the tabling of the NYDA 2012/13 Annual Report by Minister in the Presidency responsible for Performance, Monitoring and Evaluation Collins Chabane.
- The NYDA for the year 2012/13 has received an unqualified audit opinion from the Auditor General (AG) of South Africa.
- The AG’s report points to areas of improvement in the NYDA finances and operations. Among these, the AG’s report has noted significant improvements in the reduction of irregular expenditure, which dropped from R133 million in the 2011/12 financial year to R62 million in the 2012/13 financial year. This is a 53 percent reduction (improvement) from the previous financial year. While the accounting authority is pleased with this significant progress, it continues to implement measures aimed at total prevention of any irregular expenditure
- Highlights in the AG’s report that the NYDA flouted Treasury regulations by procuring goods and services worth more than R500 000 without a proper tender process, do not seek to suggest that money was wasted or misappropriated. In such instances, deviations were approved by the accounting authority wherein it was impractical to source three quotations (due to time constraints or scarcity of the service required) as required by the Treasury regulations.
- In terms of the possible defaulted loans to the tune of R31.5million, the Agency has put in place a recovery plan to recoup this money. The NYDA is taking legal action on all defaulted loans. Slow-to-pay and no-pay customers are handed over to debt collectors.
- In the process of improving collections management system, the Agency is currently increasing the number of debt collectors to scale up the collection process, negotiating of settlement offers and recommend write-offs where there is justification.
- As a developmental agency, individual cases for defaulters are reviewed according to their own merit. The Agency is flexible on loan re-scheduling or rehabilitation in cases of jeopardy situation and provide business development support services such as mentorship, guidance or couching, and where possible link business to market opportunities to be able to increase the sales.
- For the financial year 2011/12 the NYDA paid its Chief Executive officer 6% salary increase, while in 2012/13 his salary increase was 5,6%.
- On the payment of bonuses to staff, it is not uncommon for any organisation or institution to pay its staff performance bonuses, and this is usually done in line with signed performance agreements with staff at the start of the financial year. They are therefore paid against agreed upon performance targets and to do otherwise would be illegal on the part of any employer.
The NYDA Executive will on 16 October 2013 appear before the Portfolio Committee on Appropriations to formally present the Annual Report, after which another opportunity will be presented to all parties concerned including political parties and the media to raise any issues of concern.
For media enquiries contact:
Siyabonga Magadla, National Youth Development Agency
Cell: 083 686 9016
E-mail: Siyabonga.magadla@nyda.gov.za
