INLSA
Western Cape Premier and DA leader Helen Zille. File Photo: Tracey Adams
Cape Town – The auditor-general’s office has flagged millions of rands in irregular expenditure, missing assets and underspending in Premier Helen Zille’s department and the provincial legislature.
This comes after the 2011/12 annual reports of different provincial departments and public entities handed in their audited financial statements to the legislature for discussion and approval by committees.
For the next month, the standing committee on public accounts (Scopa) will meet the various departments and entities to discuss their annual reports.
The provincial legislature underspent R10 million in its administration section, while the Department of the Premier cannot locate R3.7m worth of assets listed in its asset register. R22.8m was irregularly spent and there were several lawsuits about alleged unfair labour practice.
Provincial legislature secretary Royston Hindley told Scopa that “the trend of underspending of the budget was a concern”.
He said the underspending took place because of an increase in vacant posts and “challenges” filling them.
Another reason was the pending upgrade and implementation of the legislature’s website, the electronic filing and document management system.
Hindley said an effort had been made to implement corrective steps including a remuneration study to address recruitment challenges.
On missing assets at the Department of the Premier, Zak Mbhele, Zille’s spokesman, said the department was busy stock-taking.
“The assets in question are mainly IT infrastructure and equipment. Often a portion of these assets are found during stock-take due to the equipment having been moved to another room or to another building at the time of reconciling the register, either for maintenance or repairs,” Mbhele said.
On the R22.8m irregular spending, he said it was for a communications services contract awarded in November 2007.
“The total cost was R22.8m and the expenditure was deemed irregular due to a conflict of interest that was not declared at the bid evaluation committee stage. This matter was not picked up by the auditor-general during that financial year. It was disclosed only in 2011/12 as a result of a Forensic Investigative Unit investigation.”
He said both the investigative unit and the legal services department had found the expenditure to be irregular.
“Where alleged misconduct was apparent, the necessary disciplinary processes have already been instituted against officials that were involved with the tender and contract management,” he said. “These processes are at various stages at the moment.”
Cape Argus
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Auditor flags Zille’s office