State run like 'spaza shop'

Cape Town - Government does not have an up-to-date and functional asset register and therefore cannot exercise proper control over its capital assets, parliament's public accounts committee (Scopa) was told on Tuesday.

Jilian Bailey, head of audits in the auditor general's office, told MPs only 91 out of 250 government entities were given a clean bill of health during the 2009 audit. Of all the qualified audits, 83% related to capital assets.

"There are fundamental problems in the capital asset arena," said Bailey. "This is an extremely disappointing and concerning picture. Leadership is not setting the tone to expect full compliance."

Deputy auditor general Kimi Makwetu fielded angry questions on why directors general and ministers in charge did not take more responsibility when it came to the running of departments.

"Fifteen years after democracy and we still have not asset register," said IFP MP Narend Singh. "Some of these departments are being run like a spaza shop."

Makwetu said a process to "accelerate" improvements in the way state departments and entities manage money had been initiated. This included meetings with parliamentary committee chairs to monitor state expenditure more closely.

Accountant-general Freeman Nomvalo told MPs that the National Treasury was now working with the political and bureaucratic leadership in public works as well as rural development and land reform - departments where there was a critical lack of asset management.

"A task team has been set up. However, this is a complex task and will take time," said Nomvalo, promising parliament a report by end-March with key steps that need to be taken.

- Fin24.com