DTI Unauthorised Expenditure

Overview 4 broad categories of unauthorised expenditure Compensation in terms of bilateral investment treaty R6.1 m Staff debts written off R0.1m General Export Incentive Scheme debts written off R31.1m Other debts written off R.02m Total is R37.3m Treasury argued that the unauthorised expenditure was beyond the department’s reasonable control SCOPA recommended a direct charge against the National Revenue Fund.

Compensation for BIT DTI is the custodian of the BITs, therefore rulings against the state are paid from the DTI allocation. Pumlani Lodge argued that the value of their investment declined because of high crime rates. The Tribunal found the State liable and awarded damages of R6.5 m plus interest. DTI finally paid out R15.7m, which includes the award, interest and legal fees. The award was paid from voted funds. Interest was the unauthorised amount (R6.1m).

Staff Debts Written Off Salary overpayments and bursary debts Debts could not be recovered because staff had resigned or retired. The debts were written off because: The debtors could not be traced Recovery would be uneconomical Recovery would cause undue hardship

General Export Incentive Scheme GEIS was used to boost exports and evade sanctions The scheme had loose documentary requirements Required firms to keep records for 5 years Subsequent audit found over claiming and raised debtors. 22 debtors did not repay the full amount and debts were written off – unauthorised expenditure. 14 settlement offers accepted for a lesser amount to avoid litigation 5 companies could not be traced 2 companies had no assets

Other Debts A dismissed DTI official won a case against the DTI at the CCMA R25 000 was paid as settlement R 15 000 to the South African Labour Market and Allied Workers Union R10 000 to the General Public Service Sectoral Bargaining Council