SCOPA intrusts Department of Culture and Arts to solve governance challenges at Provincial Arts and Culture Council
The North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) has instructed the Department of Culture, Arts and Traditional Affairs to resolve ongoing governance and administrative challenges at the North West Provincial Arts and Culture Council. This came after the Standing Committee held a public hearing on Public Finance Management Act outcomes of the financial year 2013/14. The Committee also received a report in the meeting from the entity that the Chairperson of the Board has resigned and created further challenges.
According to a Senior Manager at the Office Auditor General, Mr. Riaan Du Plessis, the entity has received a disclaimer of audit opinion over the past few years mainly due to a lack of systems and processes to account on financial transactions. “The entity does not have a proper management and governance structure and operates without a budget or organisational structure. The acting Chief Executive Officer was relieved of his duties few months ago and the board is conducting administrative duties,” said Mr. Du Plessis. He said the entity acquired an irregular expenditure of R805 832 and there are no effective and formal systems to ensure compliance of legislature in terms of the supply chain management processes and predetermined objectives.
A member of the Board of Provincial Arts Council, Ms Marcia Matlhaku said financial criminal cases were instituted against suspected officials involved on the irregular expenditure. “Some of our problems has not been resolved due to lack of management and administration. The entity has acquired services of the departmental monitoring and evaluation to assist with performance management information,” said Ms. Matlhaku.
She said the department has noted governance challenges of the entity hence the pronouncement on the 2015/16 financial year that the entity will be restructured into a North West Arts Agency which will address some of these challenges.
SCOPA Chairperson, Hon. Mahlakeng Mahlakeng said the department must assist the board of the entity to resolve governance challenges such as high vacancy rate including positions of the Chief Executive Officer, Chief Financial Officer and Senior Manager in the Supply Chain Management Unit and lack of capacity on dealing with audit findings.
“Issues raised on the audit report will recur in the next financial years if there is no qualified people and proper organisational structure in place. It cannot be the work of the board to perform administrative duties as it is currently happening. The should also be consequence management to hold officials who created fruitless, wasteful and irregular expenditure,” said Hon. Mahlakeng.
He said the Committee is however happy on good progress towards a better audit opinion as there seem to be a level of accountability on finances appropriated but concerned on the continued disclaimer audit opinions which must be resolved in the current financial year.
SCOPA requested the entity to submit a progress reports on all investigations and police cases on fruitless, wasteful and irregular expenditure within 7 working days.
Enquiries:
Kabo Letlhogela
Cell: 079 879 1448
