The provincial treasury department has recommended that officials from two provincial departments be disciplined for their role in incurring unauthorised expenditure.
Provincial treasury this week informed the Bhisho legislature’s public finance watchdog committee Scopa that the education and transport departments had incurred unauthorised expenditure of more than R72-million in the 2013-14 financial year.
In the report to Scopa by treasury’s deputy director-general Qonda Kalimashe, it was revealed that the education department alone incurred unauthorised expenditure of R62.7-million.
Kalimashe informed Scopa that the transport department’s unauthorised expenditure amounted to R9.4-million.
According to Kalimashe’s report, most of education’s unauthorised expenditure – R55.7-million – was from overspending the budget for public schools.
The remaining R7-million was a result of overspending in payments for goods and services, interest on rented land, payment for financial assets and subsidies for households.
“The main contributor to this overspend was also created by payment of arrears in salaries,” he said.
Kalimashe said despite the education department having been asked to explain the expenditure, “it has not been able to explain why this could not be avoided when there was no budget available”.
He said the department also failed to submit an explanation of expenditure as required by the Public Finance Management Act.
In the transport department, Kalimashe said unauthorised expenditure of R9.4-million arose from expenditure not in accordance with its budgeted purpose.
He said R3-million of the expenditure related to a donation to the Port Elizabeth Apple Express during the 2009-10 financial year for the development of a rail tourism programme.
An unauthorised amount of R6.3-million was incurred after the department assisted Port St Johns municipality with settling its debt among other things.
According to Kalimashe’s report, the department entered into an agreement with the municipality to provide financial assistance for lifeguard services at Port St Johns beaches.
A service provider was appointed and when payments stopped, the service provider approached the courts and subsequently Port St Johns premises were locked by the sheriff who demanded payments.
The department intervened and paid Port St John’s debt, using money not budgeted for such purpose.
Kalimashe recommended that the officials responsible “face disciplinary action”.
He also urged Scopa to invite both departments to explain why such expenditure could not be avoided.
Scopa chair Max Mhlati said his committee would recommend that Port St Johns be ordered to pay back the money. — asandan@dispatch.co.za
Officials in hot water over R72m overspend
Provincial treasury this week informed the Bhisho legislature’s public finance watchdog committee Scopa that the education and transport departments had incurred unauthorised expenditure of more than R72-million in the 2013-14 financial year.
In the report to Scopa by treasury’s deputy director-general Qonda Kalimashe, it was revealed that the education department alone incurred unauthorised expenditure of R62.7-million.
Kalimashe informed Scopa that the transport department’s unauthorised expenditure amounted to R9.4-million.
According to Kalimashe’s report, most of education’s unauthorised expenditure – R55.7-million – was from overspending the budget for public schools.
The remaining R7-million was a result of overspending in payments for goods and services, interest on rented land, payment for financial assets and subsidies for households.
“The main contributor to this overspend was also created by payment of arrears in salaries,” he said.
Kalimashe said despite the education department having been asked to explain the expenditure, “it has not been able to explain why this could not be avoided when there was no budget available”.
He said the department also failed to submit an explanation of expenditure as required by the Public Finance Management Act.
In the transport department, Kalimashe said unauthorised expenditure of R9.4-million arose from expenditure not in accordance with its budgeted purpose.
He said R3-million of the expenditure related to a donation to the Port Elizabeth Apple Express during the 2009-10 financial year for the development of a rail tourism programme.
An unauthorised amount of R6.3-million was incurred after the department assisted Port St Johns municipality with settling its debt among other things.
According to Kalimashe’s report, the department entered into an agreement with the municipality to provide financial assistance for lifeguard services at Port St Johns beaches.
A service provider was appointed and when payments stopped, the service provider approached the courts and subsequently Port St Johns premises were locked by the sheriff who demanded payments.
The department intervened and paid Port St John’s debt, using money not budgeted for such purpose.
Kalimashe recommended that the officials responsible “face disciplinary action”.
He also urged Scopa to invite both departments to explain why such expenditure could not be avoided.
Scopa chair Max Mhlati said his committee would recommend that Port St Johns be ordered to pay back the money. — asandan@dispatch.co.za
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