Treasury’s role increasingly important as fiscal noose tightens

Sir
As the fiscal noose grows tighter and tighter so provincial treasury’s role to implement its strategic objectives becomes harder and harder with regard to;
* Promotion of sound financial management practises and fiscal management
* Ensure targeted financial resources allocation and utilisation that contributes to improved service delivery
*To enhance capacity and capability of supply chain management to eliminate irregular expenditure
* To monitor and facilitate infrastructure delivery toward job creation
* Promote sound cash management practises and improve liquidity.
If one takes into account the Auditor General’s report that I referred to in my previous debate, then it is abundantly evident that some of the strategic objectives have not been met. Then as stated in the NDP as a province we face challenges with “leadership, sound policies, skilled managers and workers, clear lines of accountability and appropriate systems.”
It is therefore of grave concern that the budget for Internal Audit has been reduced by 18.5% from R149.3 million to R121.6 million, a reduction of almost R28 million. Surely it is as clear as mud that certain departments and municipalities are not meeting the standard? On a positive note though, the MEC did give the finance committee the undertaking that Treasury will have to re-look at additional funding during the course of the financial year.
Treasury under spent on compensation of employees by R20.372 million, due to the non-filling of vacant posts, as a result of the moratorium on the filling of posts and the lengthy recruitment process.
Is this not an area where a vital department such as treasury needs to refocus its energy in order to meet its strategic objectives?
I am aware that the MEC continually complains that Treasury trains and capacitates staff only to be poached by other departments.
This should and can be addressed to avoid a “brain drain”!
The e-procurement pilot was scheduled to start in April 2015 and planned to go live in the provincial Treasury in July 2015. This has not happened and now Treasury faces budget cuts.
The question is why did this happen? And when will it eventually see the light of day? Has the delay been caused by a lack of capacity or a lack of man power? If the latter is the reason then my proposal makes all the more sense.
A further challenge experienced by certain departments is the apparent employment of “ghosts”! The department of Education have been undertaking a headcount exercise for the past six years now with little or no finality.
Treasury has now been assisting the department to try and bring this to closure, the challenge now is that Treasury and Education cannot seem to agree on the actual number of ghosts wafting in the hallowed halls of our schools!
The question again arises why is this process taking so long and why are there discrepancies between the two departments, is it a lack of capacity or a lack of man power or is there something more sinister at play?
The ghost story is far from over I am afraid, Treasury now has a ghost busting unit and has undertaken to do a ghost busting exorcism in the Department of Health.
One can only hope that this process doesn’t take six years.
The DA welcomes a full report from Treasury on both these departments with an analysis of the financial implications, action to be taken by each department in the recovery of any fraudulent salaries and the consequential saving for each department.
The DA welcomes the new enhanced Biometric Access Control System (BAS) and the acquirement of new biometric scanners, commencing with Education and Health, although the MEC did dampen my enthusiasm during the budget debates when she made it abundantly clear that the system is only as good as its operators and will not stop fraud and collusion.
A further concern within Treasury is the slow spending on the infrastructure crack team, delays in the finalisation of consultant’s panels for projects which resulted in an under spending on goods and services to the tune of R34.5 million.
The DA eagerly awaits Treasury’s proposal on the Legislature budget to top slice the Provincial Equitable Share allocations and to elevate it to National Treasury.
This could have severe consequences come 2016/17 adjustment budgets. We need to fasten our safety belts – it could become a bumpy ride!
The DA welcomes MEC’s Scott’s bold initiative in line with National Treasury policy, to temporarily halt the government office precinct project and the R305 million for Strategic Cabinets Initiatives Fund over the MTEF.
In closing, I do believe that this House owes a debt of gratitude to the extremely dedicated staff in our Treasury, ably led by the HOD and MEC of Finance.
One can only shudder to think where we could be without their continued commitment to the cause.
Francois Rodgers, MPL, DA