Related Articles
Top Stories
Feb 12 2012 15:59
Moral hazard, financial weapons of mass destruction, a huge mess - these were the words used by a founder member to sum up the collapse of the Pinnacle Point Group.
Feb 12 2012 15:58
Construction companies are now undertaking a second round of self-examination into uncompetitive behaviour.
Feb 12 2012 14:54
American billionaire George Soros has slammed German Chancellor Angela Merkel, warning that her policies could lead to a repeat of the Great Depression.
Cape Town - Parliament and cabinet ministers must cooperate to resolve the root causes of government's persistently poor management of public money, according to Themba Godi, chairperson of parliament's public accounts committee (Scopa).
Speaking to Fin24.com on the eve of his committee's first meeting of the year, Godi conceded that there had been little improvement in the way government departments managed their finances over the last five years.
An official analysis of auditing outcomes confirmed this.
Of about 460 national and provincial departments and public entities, only seven received clean audits in 2009 compared to four in the 2004 to 2005 financial year.
According to the report, signed off by auditor-general Terence Nombembe, the vast majority of government departments don't practice the basics of daily accounting.
Departmental officials also show a "disregard" for financial management legislation they are legally obliged to implement, the report said.
Godi, who leads the ANC in parliament, said Scopa had finalised a programme of hearings for government departments on the issue of managing money. Yet the main challenge was "outside" parliament's control, he said.
"Parliament can't interfere in the work of the executive," said Godi. "It is the executive that hires and fires bureaucrats. Parliament can only recommend."
Another critical problem in the state bureaucracy was that senior bureaucrats tended only to stay for as long as their three- to five-year contract required, said Godi.
"The key issue is instability at the top of the state bureaucracy. This is caused by the 'short termism' of senior officials. The high turnover means there is a lack of continuity.
"Is it not the right time for senior managers in departments to serve as professional civil servants?, asked Godi, who promised a more effective and robust Scopa in 2010.
President Jacob Zuma's spokesperson was unavailable for comment. However, this is one of the issues MPs are hoping will be addressed in the state of the nation speech set to deal with measures to monitor cabinet ministers more closely.
- Fin24.com