On Thursday 29 November 2012, the MEC for the Department of Public Works, Roads and Transport, Hon. Raymond Elisha and management appeared before the Portfolio Committee on Public Works, Roads and Transport to account on the department’s Annual Report 2011/12 at the Legislature Building.
The department had received a disclaimer with emphasis audit opinion for two consecutive years, 2010/11 and 2011/12 financial years.
According to the Auditor General’s report, in the current year, the department had an irregular expenditure of R789 476 591 based on absence of contract management system and inability to relate detail payments to specific contracts. It also had a closing balance of R1 781 042 000 based on contract files not provided and lack of detail in contract register resulted in a scope limitation.
There was immovable tangible assets on non-residential buildings of R17 047 244 000 as there was no title deeds or contractual agreements and no valuation certificates or registers reflecting their values.
The department also had a fruitless and wasteful expenditure of R11 222 220 that was understated due to matters like suspensions.
The Auditor General’s office could not be provided with sufficient appropriate audit evidence that goods and services with a transaction value below R500 000 were procured by means of obtaining the required price quotations and transaction value above R500 000 were procured without inviting competitive bids as required by Treasury Regulations 16A.6.1.
There was also lack of systems to ensure compliance with laws and regulations and skilled and no skilled and competent personnel such as engineers and quantity surveyors to support department’s core functions.
The Committee under the Chairperson, Hon. Hoffman Galeng complained that the MEC faces a serious danger of running the department with unskilled and corrupt personnel.
“The report of the public service commission mentioned that the department is one of the two that do not have a unit that looks into corruption within the department.
“The department plays an important role in the province by providing basic services such as roads, infrastructure and transport, therefore it must be on the forefront of the fight against corruption,” said Hon. Galeng.
He said the department has shown no commitment to issues on the auditor general’s report as they recur every year.
The Chief Whip of the Legislature, Hon. Gordon Kegakilwe said the line of authority in the department needs to be visible and accessible to all personnel.
“Lack of proper management procedures and deviations from the supply chain management policies from top management to junior staff is a serious crisis in the department,” said Hon. Kegakilwe.
The MEC Elisha said the department has a turnaround strategy to address matters affecting service delivery.
“Our strategic and annual performance plans will contain planned objectives and organisational structure that is aligned to the budget and enhances service delivery.
“An amount of R10 million from the provincial roads maintenance grant will be utilised as a strategic intervention to address technical skills shortages,” said Hon. Elisha.
He said the department has embarked on a 4 district summit for consultation with members of the public and relevant stakeholders to address critical issues regarding provincial transport infrastructure.
“We have also placed terms on poor performing service providers,” said Hon. Elisha.
Hon. Galeng said the department must respond in writing to all outstanding questions and the Committee will communicate with the department for further engagements.
For more information contact:
Namhla Luhabe
Cell: 079 527 0628
