AG gives Public Works the red card

2011-10-04 07:35

Johannesburg - Public Works Minister Gwen Mahlangu-Nkabinde's department has been given a disclaimer, one of the worst audit reports possible, according to a report on Tuesday.

Auditor general Terence Nombembe said he found, among other things, irregular expenditure amounting to R16.5m.

Also, the department could not verify or account for material losses of R54.8m in a public-private partnership for vehicle leases.

Nombembe said another problem was an inability to obtain evidence of R1.3bn in capital transactions.

There were also questions around the immovable assets of the department, which is the custodian of most of the government's property portfolio.

"I was unable to obtain sufficient and appropriate audit evidence to satisfy myself as to the completeness, existence, rights, valuation and allocation of properties recorded in the immovable asset register of the department stated at R3.4bn," Nombembe said, according to a report in Business Day newspaper.

In reaction, Mahlangu-Nkabinde said the situation was "salvageable", and that "progress towards financial stability and good corporate governance is under way".

In two separate reports this year, Public Protector Thuli Madonsela held Mahlangu-Nkabinde and national police commissioner Bheki Cele responsible for a R500m and R1.1bn lease agreement with businessman Roux Shabangu for police office space in Pretoria and Durban.

Madonsela found the leases were concluded in an unlawful and improper way.

Last week, Mahlangu-Nkabinde applied to the high court in Pretoria to have a controversial police lease, worth R2bn, declared null and void.

  • amabok - 2011-10-04 08:34

    Gwen Mahlangu-Nkabinde's - "...progress towards financial stability and good corporate governance is under way". Uh come again? The report found exactly the opposite. This is the ANCalamity's private slush fund. Does she know a thing about financial stability or corporate governance? Perhaps taken graduate classes in finance or ethics or governance?

  • Bullhunter - 2011-10-04 10:20

    When will this cANCer nightmare end?????

  • Grolim - 2011-10-04 10:22

    It is sad, gut wrenching and absolutely devastating that some of the poor are forced to endure no service delivery, no access to water, sewage infested hospitals, kids being taken to schools via donkey carts because of no funding. And the officials in charge cannot account for R2.1Bn. This is CRIMINALITY of the highest order. Some of the officials must be taken to Hague to face charges of gross human violation

  • AntonioP - 2011-10-04 12:03

    To this indictment Public Works Minister Gwen Mahlangu-Nkabinde replied: "Yes, but all wrongdoing was done either before my time in office, or will be done after my time in office. During my time, nothing wrong was done. And if it was done, I did not know about it. And if I knew about it, I was handed loads of poisoned chalices."

  • Shivaskar - 2011-10-19 18:50

    Just another Failure! ANC - 'taking the people to financial failure!'

  • pages:
  • 1