Scopa expects legislature to lead by example

POLOKWANE – The Limpopo legislature’s failure to receive a clean audit from the Auditor-General (AG) for the period ending 31 March 2013, was a cause for concern for the Standing Committee on Public Accounts (Scopa).

This concern was expressed during a Scopa meeting with legislature’s senior management during a sitting last Thursday. “We expected a clean report, but Scopa is worried,” Scopa chairperson, Jack Matlala, told legislature secretary, Maletlatsa Ledingwane, and acting chief financial officer (CFO), Jonathan Molawa.

“The legislature is the watchdog of regulations and should see to it that other departments and entities follow it,” he said.

Scopa asked why an acting CFO was in place instead of the former CFO’s contract having been renewed, as this led to a loss of expertise.

The former CFO was reportedly appointed at another department, and Scopa asked if due process was followed. Scopa requested a report about what had occurred and why the former CFO had not been reappointed.

Matlala told Ledingwane that there were serious issues around compliance with laws and regulations.

The issuing of verbal warnings to officials were again put under the spotlight. With verbal warnings, it could not be verified that actions had been taken against officials who did not see to it that systems and procedures were in place.

The interpretation of the Limpopo Political Party Fund Act ensued in a long debate, as the legislature and the AG’s office supported two different interpretations regarding reporting on management and the administration of the monies given to political parties under the act. As this was the second consecutive year this issue surfaced in the audit report, Scopa said the interpretation must be clarified with the AG’s office urgently.

Another cause for concern was that the AG was worried about the reliability of the information presented regarding some programmes administered by the legislature as the institution could not provide appropriate evidence in support of the information presented.

Financial statements were not prepared in all material respects in accordance with requirements of the Public Finance Management Act.

According to the AG, the legislature should move on to a clean audit, as it received an unqualified audit report for the last four years.

Being the ultimate oversight body in the province, it should have the capacity to obtain a clean report.

The legislature was then ordered to deliver satisfactory reworked answers to Scopa on February 14.