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Johannesburg - Financial chaos continues to dog the public
works department, according to the Auditor General (AG).
This resulted in AG Terence Nombembe giving the department
another disclaimer for the 2011/12 financial year - one of the worst audit
opinions possible.
Nombembe said he could not rely on information provided by
the department about, among other things, how many properties it owned and
leased to sister departments and other state entities, and the accuracy of
irregular, fruitless and wasteful expenditure.
"I was unable to obtain sufficient appropriate audit
evidence to satisfy myself as to the completeness of irregular expenditure
relating to the current year stated at R171 127 000 (2011: R1 396 000)."
The department's financial statements indicated there was
over R69m in fruitless and wasteful expenditure.
Nombembe said he could not rely on this figure either, as
the department did not have a system in place to identify this type of spending.
The lease problems at the department continued.
"I was unable to obtain sufficient appropriate audit
evidence for operating lease expenditure transactions with an estimated value
of R48 513 867," said Nombembe.
Action against department officials accused of wrongdoing
was lacking in various instances.
"Investigations have not been conducted into all
allegations of financial misconduct committed by officials, as required by
treasury regulations."
As a result of this failure, disciplinary steps were also
not taken against officials suspected of such conduct.
On the supply chain management side, the department was
faring poorly by contravening treasury regulations and procuring goods and
services of a transaction value higher than R500 000.
Nombembe took aim at officials who played a part in awarding
relatives, friends, partners or associates lucrative public works contracts
Some of these officials had not been sanctioned for fraud
and corruption.
The department's leadership was criticised for not holding
officials accountable for their actions.
"Instability in key leadership positions had a negative impact in providing effective leadership in the department."
There have been various changes and turnaround plans in the department in the past few years.
Public works has had three ministers at its helm in the past two years following Cabinet reshuffles by President Jacob Zuma.
