Public funds must be properly safeguarded

Thulas NxesiNo one enjoys dismissing employees - but we need to send a clear message of zero tolerance where fraud and corruption are concerned.
I have said that Parliament - and the public - needs to be assured that public funds are properly safeguarded and utilised. This is part of what accountability means.

Last year, negative reports from the auditor-general, the public protector and the Special Investigating Unit (SIU) pointed to the depth and scope of corruption in the Department of Public Works (DPW).

It is for this reason that shortly after my appointment I removed certain financial delegations to regions of the department, such as withdrawing their powers to sign leases. After a rapid diagnostic exercise conducted by Treasury, I announced my turnaround strategy at the beginning of this year. I made it very clear that the turnaround rests on two pillars: combating fraud and corruption, and radically improving the business practices and performance of the department.

In terms of combating corruption, the quiet, but relentless, work of the SIU has uncovered detailed evidence to allow us to proceed with disciplinary processes against certain officials within the department. Criminal cases are being opened against some officials, and more are expected to follow.

Twenty-two irregular leases have already been identified in one region alone - involving payments of over R64-million.

This includes leases where the DPW paid for the duration of the lease with­out the building being occupied. We have instructed our lawyers to approach the high court to nullify these irregular lease agreements and institute civil action against whoever benefited unduly.

As far as the much publicised South African Police Service (SAPS) lease is concerned, the department launched an application to the high court to declare this lease agreement invalid. The matter is now before court for adjudication.

In pursuing the second objective of the turnaround - improving business practices - 15 crucial stabilisation projects have been identified. For present purposes, I want to focus on those projects which have a direct bearing on issues of fraud and corruption.
In relation to the audit of leases, the following actions have been taken: the SIU has audited irregular leases in the Johannesburg region ­ leading to the actions listed above - and the auditor­general has conducted a sample audit of leases.

The DPW in partnership with Treasury will audit the balance of the 3 000 current leases.

A tender has been published to solicit the services of forensic auditors with the objective of finalising this process by February 2013.

The absence of a comprehensive and reliable register of the state's immovable assets (land and property) has provided further scope for fraud and corruption.

In May this year, the department completed a desktop exercise to reconcile data with the Deeds Office. A physical verification of state assets is now being undertaken to verify the existence, condition and extent of the state's immovable assets.

As part of our response to the auditor-general's report, the department's internal audit and investigations branch will carry out sample investigations into procurement and ten der processes in the construction projects of the DPW business.

The need to focus on this has been highlighted by recent scandals, including the failure to complete the Diepsloot police station.

The turnaround of the DPW is a process, and not an event. We intend to stabilise the department over the next two years.

With the help of the SIU and other agencies, I believe we are making progress in combating fraud and corruption.

To corrupt individuals and officials, I want to leave you with the following thoughts: You can run, but you can't hide. If you steal from the poor, we are coming to get you.

Thulas Nxesi is Minister of Public Works.

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