Cape Town - Embattled Public Works Minister Gwen
Mahlangu-Nkabinde is to approach Finance Minister Pravin Gordhan about her
department's property management trading entity (PMTE), which has been heavily
criticised by the auditor general.
"As a matter of urgency, the PMTE needs to be reviewed
and I will be discussing it with the minister of finance,"
Mahlangu-Nkabinde said in a statement issued late on Monday - the day that the
department of public works' annual report was tabled in parliament.
In the report the auditor general said there was
insufficient audit evidence of the completeness, existence, rights valuations
and allocation of properties recorded in the immovable asset register stated at
The auditor general also found other evidence of irregular
and wasteful expenditure, which caused him to issue a "disclaimer" of
the department's financial statements - the worst possible rating he could
In her statement, Mahlangu-Nkabinde stressed her deep
concern and said she had anticipated the disclaimer and that the report made
for troubling reading.
"There is a clear record of financial mismanagement
running into hundreds of millions of rand," she said. "All I can
promise South Africa is that we will sort this mess out and turn the department
around. That is my job and I will fulfil it."
She said that the situation was salvageable and that the
majority of people in the department were honest, hard-working and ashamed of
their corrupt colleagues.
Mahlangu-Nkabinde said it was particularly troubling that
the auditor general was so critical of the PMTE.
"This organisation was set up so that government could
get better control of its property portfolio, but the AG's report shows that
this intention has not been properly implemented and the PMTE is not fully
functional," she said.