Following a Circular that came into effect on 1 January 2012 that clearly shows that there will be zero tolerance to further incurring of irregular expenditure, in terms of the Public Finance Management Act (PFMA), 1999, the Department of Transport Supply Chain Management (SCM) Unit conducted another informative workshop on 3 February 2012 at Stellenbosch Park in King William’s Town.
The purpose of the presentation is to ensure that all employees at the department have a clear and comprehensive understanding of the irregular expenditure and its implications, and also to ensure that resources made available to employees are utilised efficiently, effectively, economically and for authorised official purposes and ensuring that resources are managed in compliance ...”, said Sindisa Conjwa, Supply Chain Management Director and the facilitator of the workshop.
Painting a clear picture of what irregular expenditure is Mr Conjwa said irregular expenditure is incurred in the following manners “but not limited to”:
- By directly entering into a Service Level Agreement (SLA) without following procurement processes
- Directly hiring services of a provider without an official order
- Directly agreeing with a service provider to provide services or delivery of goods without that service provider being on the database of suppliers
- Using one quotation, in instances three quotations are required, without valid reasons and authority from SCM
- Payment of invoices with no order first being issued
- Applications to the Accounting Officer for the granting of condonation in cases where services were rendered or goods delivered before an order is issued by SCM
- Appointment of person without following proper processes
- Appointing of intern without following proper processes
- Acting on posts that do not exist and non-funded
- Allowing persons to act beyond 12 months
- Transactions and decisions made without adherence to the policies and protocols including protocol on irregular expenditure
- Transactions and decisions made without complying with delegations
Mr Conjwa encouraged employees to register expenditures identified as irregular by SCM and Finance Units in the departmental irregular expenditure register and assured to take effective and appropriate disciplinary step against officials who made or permitted an unauthorised expenditure.
“Let’s all commit ourselves to avoid irregular expenditure”, Conjwa concluded his presentation.
