Reply by Minister of Basic Education, Angie Motshekga, on questions posed in the National Assembly for written reply

Question No. 1607

Mr JRB Lorimer (Democratic Alliance) to ask the Minister of Basic Education:

(1) Whether any forensic audits have been instituted by her department into its administration or the administration of its entities (a) in the (i) 2007/08, (ii) 2008/09 and (iii) 2009/10 financial years and (b) during the period 1 April 2010 up to the latest specified date for which information is available; if not, what is the position in this regard; if so, in each case, (aa) what was the subject of the audit, (bb) what was the finding of the audit, (cc) which entity or company or person was used to conduct the audit and (dd) what was the cost of the audit;

(2) Whether the results of the audits have been made public; if not, why not; if so, (a) when and (b) what are the further relevant details;

(3) Whether any criminal or disciplinary proceedings have been instituted as a result of the audits; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

Forensic audits: administration of the Department of Basic Education

1. (a) Yes, forensic audits were instituted as follows:

(i) 2007/08: 4
(ii) 2008/09: 3
(iii) 2009/10: 1

(b) 1 April 2010 to 25 May 2010: 1

NB: All public entities under the Department of Basic Education have their own internal audit units as required by the Public Finance Management Act (PFMA) and conduct forensic audits on their own.

(aa) Subjects of audits

• 2007 to 2008
  
  • Further Education and Training (FET) study guide (no correct tender procedures were followed when books were procured)
  • No proper procedures were followed when state vehicle was sold: Volvo S80
  • United Nations Education, Scientific and Cultural Organisation (UNESCO) website (not following procurement process)
  • Non compliance with the supply chain management policy
    
• 2008 to 2009
  
  • Unfair appointments (relatives and friends appointed unfairly by the department)
  • Contract appointment (official employed on a contract basis and work from home but still receive leave entitlement.
  • Staff member conduct remunerated work outside public services without approval and utilise state equipment to do the work.
    
• 2009 to 2010
  
  • Bright side services: Service provider was using a value added tax (VAT) number of a different company
  • 1 April 2010 to 25 May 2010
  • Development of a database for whole school evaluation that never functioned properly after installation.
    
• 1 April 2010 to 25 May 2010
  • Development of a database for whole school evaluation that never functioned properly after installation.

(bb) Findings

• 2007 to 2008
  
  • FET study guide
    • The investigation revealed that necessary approval was obtained and no irregularities were discovered
  • Volvo S80
    • No irregularities were discovered during the audit.
  • UNESCO website
    • No irregularities were discovered during the audit.
  • Non compliance with the supply chain management
    • The matter was investigated and it was found that the Department did not adhere to the supply chain policy to obtain services. Quotations were also split so that the amounts were small enough to meet the ceiling amount applicable to price quotations, thus avoiding Tender process.
      
• 2008 to 2009
  
  • Unfair appointment
    • The matter was investigated and it was found that proper procedures were followedwhen appointing the officials.
  • Contract appointment
    • The matter was investigated and no irregularities were found.
  • Remunerative work outside public service
    • No irregularities were found.

• 2009 to 2010
  
  • Bright side services
    • The matter is under investigation by the South African Revenue Service (SARS)
      
• 1 April 2010 to 25 May 2010
  
  • Development of a database for whole School evaluation
    • The investigation is pending

(cc) Company or person used to conduct the audit

• Non compliance with the supply chain management policy
  • OMA Chartered Accountants Inc. was appointed to conduct the investigation.

(dd) Non compliance with the supply chain management policy:

2. Whether the results of the audit have been made public?

• Non compliance with the supply chain management policy
  
  
  • The department report the matter as irregular expenditure in the annual report of2007/08. The matter was also reported to the Public Service Commission (PSC) and the Auditor-General
  • All cases received via the anti-corruption hotline were reported to Public Service Commission.
  • All cases were also reported to the Audit Committee.

3.Whether any criminal or disciplinary proceedings have been insituted as a result of the audits?

• Non compliance with the supply chain management policy
  • Three officials were charged with financial misconduct and disciplinary proceedings have been instituted. The officials were discharged.

• Remunerated work outside the public service
  • The staff member was suspended for the duration of the investigation.

Source: Department of Education