Standing Committee On Public Accounts 30 November 2016

Content Background Irregular Expenditure Fruitless and wasteful expenditure Measures put in place to prevent irregular, fruitless and wasteful expenditure

Background Most of the irregular expenditure relates to legacy contracts that were issued without following SCM prescripts and are currently under investigation to determine if there was value for money or whether there was financial misconduct. Once these investigations are concluded it will be determined if anyone needs to be held accountable for the breaches and action will be taken against transgressors including recovering of some of the amounts where no value for money was obtained.

Irregular expenditure – Refer detail Annexure A

Irregular expenditure – Refer detail Annexure A

Irregular expenditure – Refer detail Annexure A

Fruitless and wasteful expenditure – Refer detail Annexure B

Measures Measures put in place: Approval of SCM policy aligned to Treasury regulations. Disciplinary actions against officials have been initiated and some officials dismissed. Cases reported to SAPS. Investigation of Irregular Expenditure by Forensic Team. Investigation of contracts above 10 Million by National Treasury. Review of payment above 10 Million prior to payment being made by Internal Audit. Proactive review of tenders by probity officer prior to award.