Coghsta incurs over R844m in irregular expenditure

The Standing Committee on Public Accounts (Scopa) has expressed disappointment over a lack of consequence management displayed by the Department of Cooperative Governance, Human Settlements and Traditional Affairs (Coghsta) after the office recorded irregular expenditure amounting to R844 687 000 in the 2017/18 financial year.
The revelation was made during a public hearing at Parliamentary village last Tuesday. It was reported that the amount incurred was due to non-compliance with supply chain management processes and regulations. The committee also raised concern over stagnant audit outcomes in the past two financial years being 2017/18 and 2018/19 after the department received unqualified audit opinions. For the financial year under review, the department incurred fruitless and wasteful expenditure to the tune of R111,4 million while in 2017/18 an amount of R112 439 951,51 was incurred of which R999 206 was due to interests and penalties on overdue accounts.

Scopa expressed its disappointment that consequence management is at its lowest and that there was no harsh action for wrong doing. The committee indicated the department seems as though they act for malicious compliance just to respond to Scopa questions on action taken by the department against officials who have caused irregular or fruitless and wasteful expenditure. The committee pointed out that most answers by the department were not responding to questions to which Coghsta MEC Basikopo Makamu reportedly replied: “I went through them. I wanted to satisfy myself and felt that some of the answers were insufficient, especially to those questions where people had to be named. I had to ask for the names to be supplied.”
The committee also ruled that Makamu must institute action and report on the progress when he tables Scopa resolutions in the legislative chamber. Scopa Chairperson Goodman Mitileni in his closing remarks reportedly said: “We are concerned with the decline in the performance of the department. Clearly the evidence brought to us shows that there is a lack of consequence management; only written warnings are issued for all offences.”

Story: ENDY SENYATSI
>>endy@observer.co.za