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Cape Town – Des van Rooyen's Department of Cooperative Governance and Traditional Affairs (Cogta) has increased its irregular expenditure by 184% under his watch.
The department, which appeared before Parliament’s standing committee on public accounts (Scopa) on Wednesday, incurred irregular expenditure of more than R1bn in the 2015/16 financial year. It regressed from an unqualified audit opinion with matters to a qualified audit opinion in the 2015/16 financial year.
Van Rooyen, controversial for his close relationship with the Gupta family, was redeployed as the department's minister towards the end of last year after serving four days as finance minister, having replaced Nhlanhla Nene on December 9 2015.
On Wednesday, the Democratic Alliance's Tim Brauteseth, a member of Scopa, lambasted the department’s acting director general Muthotho Sigidi for allowing breaches to the Public Finance Management Act (PFMA).
“You are the accounting authority,” Brauteseth said, “and it’s your responsibility to ensure adherence to the PFMA procedures.”
Brauteseth said the Department of Cooperative Governance and Traditional Affairs has always received clean audits. “But now there’s a 184% increase in your irregular expenditure. Who dropped the ball?”
The acting director general responded by saying the bulk of this could be ascribed to “implementing agents” not following the correct procurement procedures.
“The increase (in irregular expenditure) was because there were two levels of irregular expenditure with tender processes,” Sigidi said, “when they were appointed for a period of three years.”
One of the reasons the department furnished irregular expenditure was failure to comply with supply chain management procedures through its Community Work Programme.
The programme was subjected to a forensic investigation, of which the first phase has been completed. This will determine what steps should be taken next.
Department of Cooperative Governance and Traditional Affairs Deputy Minister Andries Nel weighed in, saying the Community Work Programme had its challenges, but that the department was busy making sure the right procurement processes are followed and that the next cycle of appointments would be “squeaky clean”.
Van Rooyen concluded that his department addressed the “elephant in the room”, which according to him was the Community Work Programme. “I’m happy to report the elephant in the room has fallen. Now we just need to decide how to eat it.”
He added that his ministry will follow a “roadmap” to ensure the department receives an unqualified audit in the next financial reporting period.
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