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Gauteng to act on R4.8bn spent illegally

Johannesburg - Gauteng will act against department officials responsible for R4.8bn in irregular expenditure, premier Nomvula Mokonyane said on Monday.

"The (Gauteng provincial government) committed itself to making sure we spend our resources in the manner we can account for," she told reporters in Johannesburg.

"I hasten (to add) we have taken appropriate measures against those who have failed to provide leadership."

Drawing on auditor general Terence Nombembe's 2010/11 report, she highlighted irregular expenditure by the departments of health (R2.2bn), roads and transport (R2.2bn), and infrastructure (R242m).

Action taken against officials would include suspensions, disciplinary hearings and dismissals.

Finance MEC Mandla Nkomfe said an investigation was under way into several tenders awarded by the roads and transport department. The infrastructure department was also instituting action against officials.

"Other actions include the implementation of proper financial management systems and the revamping of supply chain management processes."

He said in most cases supply chain inventory and management was the biggest contributor to both irregular and unauthorised expenditure. The province was working with the AG, the finance department and the National Treasury to correct this, Nkomfe said.

He said the health department had been plagued by both irregular and unauthorised expenditure, leading Mokonyane to approach the national government for help. To this end, a collaborative agreement between the premier and the ministers of health and finance had been reached, Nkomfe said.
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