South Africa: Select Committee on Public Infrastructure Is Briefed by Auditor-General
The committee expressed serious concerns about the mixed performance of these critical government institutions that report to the department.
Committee Chairperson Mr Rikus Badenhorst noted that while Brand SA maintained its clean audit status, the regression in the DPME's audit outcome from clean to unqualified with findings, as well as the persistent material findings at Stats SA, point to systemic weaknesses in expenditure management, internal controls and consequence management across the portfolio.
"What emerges most clearly from the Auditor-General's presentation is a culture of stagnation. Recommendations are noted but not acted upon, plans are drafted but not internalised, and repeat findings accumulate without resolution. We cannot allow inaction to become institutionalised," said Mr Badenhorst.
The committee was particularly concerned about the significant backlog of unresolved irregular and fruitless expenditure cases at Stats SA, some dating back over a decade. Members of the committee argued that the vacancies in key positions, including the CFO role which has been vacant for eight years, have severely weakened the control environment and accountability mechanisms at the entity.
The committee said the credibility of the data and statistics produced by Stats SA is critical for effective government planning and service delivery. The persistence of these governance and financial management failures is deeply troubling and requires urgent intervention.
The committee welcomed the Auditor General's recommendations for the accounting officers, including:
- Ensuring vacant positions are timeously filled to maintain effective internal controls
- Enhancing reviews of performance planning and reporting processes
- Swiftly resolving all cases of irregular, fruitless and wasteful expenditure
- Monitoring the implementation of action plans with a focus on daily controls and reconciliations
Members emphasised the need for the executive authority and accounting officers to be held accountable for addressing these persistent weaknesses.
The committee committed to regularly engage the DPME, Brand SA and Stats SA to monitor progress on implementing the AG's recommendations and achieving tangible improvements in audit outcomes, performance and accountability.
'This report must be our guide when we engage these departments during the upcoming budget process. We cannot allow inaction to become institutionalised. The people of South Africa deserve efficient, transparent and accountable public institutions that deliver on their developmental mandate,' concluded Mr Badenhorst.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
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