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Labour Dept under scrutiny
By Christelle du Toit
JOHANNESBURG – The National Department of Labour (DoL) is in hot water with the national legislature's Standing Committee on Public Accounts (Scopa).
The department has not taken “adequate action” to withdraw more than R45,5 million from its Seta Zero fund.
A Scopa report said “At year-end the nature or purpose of the monies in the Seta Zero account could not be verified.”
Only money gathered from skills development levies are supposed to be paid into this account, which is then supposed to be allocated to the relevant skills development agencies.
According to Scopa, the DoL could not provide documents to back R90,1 million in claims owed to them.
The DoL was rapped on the knuckles by Scopa for not implementing “elementary” aspects of proper financial administration.
According to the Scopa report, the DoL is guilty of “various instances of non-compliance with the Public Finance Management Act and Treasury Regulations”.
It recommended the department’s accounting officer report back to the Minister of Labour, Membathisi Mdladlana, within 30 days on how this was being addressed.
The department also has to hand in a detailed report on why performance management bonuses to the value of 5,06% of its personnel expenditure were paid out.
Public Service directives determine that performance bonuses should not be paid out in excess of 1,5% of a department's personnel expenditure.
The DoL indicated it would comment on Scopa’s findings as soon as it had consulted relevant parties.
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