The International Trade Administration Commission of South Africa (ITAC) appeared before the Select Committee on Economic and Business Development to present its Annual Report for the 2016/17 financial year on Wednesday at Parliament.
The Chairperson of the Committee, Mr Mandla Rayi, noted problems and weaknesses in the entity’s internal controls and irregular expenditure. He expressed his concern over the entity’s internal controls and irregular expenditure.
“In the presentation you say there was no fruitless and wasteful expenditure incurred in the 2016/17 financial year, but in the Annual Report booklet, I can see there is a disclosed amount of irregular expenditure that was written off, please explain to the Committee on that aspect?” said Mr Rayi.
According to the Chief Commissioner, Mr Siyabulela Tsengiwe, there was a case of irregularity involving one of the suppliers who applied for a tender. However, according to Mr Tsengiwe this particular supplier could not complete the work and that resulted in the entity appointing another supplier to do the work.
“A case has been opened against this supplier and the amount that was indicated as irregular expenditure in the booklet does not fall under the current financial year, the incident happened in the previous financial year, hence we did not include it in the presentation as irregular expenditure. And the matter is with the South African Police Service (SAPS),” said Mr Tsengiwe.
Mr Tsengiwe further said “ITAC has developed an Audit Action Plan template with action to be taken in order to address the audit findings relating to compliance, as identified by the Auditor-General of South Africa. Some of the weaknesses identified during the audit have been addressed and there is constant monitoring of the activities which are still in progress”.
Mr Rayi asked the Chief Commissioner to provide the Committee with the Audit Action Plan and the SAPS case number so that the Committee can also do a follow-up on that matter. “Please remember to provide us with your Audit Action Plan as well as the SAPS case number of the particular supplier’s incident so that we as a Committee can also do investigations about this matter.”
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