Parliament, Friday, 02 June 2017 – The Standing Committee met with the National Treasury on the procurement process pertaining to the Integrated Financial Management System and the overall status of governance and controls within the National Treasury. The Committee Chairperson indicated that the purpose of the meeting was essentially to assure citizens that Parliament remains committed to ensuring that the use of state resources adheres to the principles of efficiency and effectiveness. The Chairperson indicated that the Committee has engaged with engaged with National Treasury on these issues in recent past and recognises that the Integrated Financial Management System (IFMS) is important in alleviating the bottlenecks of ageing and obsolete software and hardware
The Committee was concerned by media reports of inadequate control measures for the R4.3 billion IFMS project. As part of its proactive oversight strategy, the Committee requested a thorough briefing from National Treasury in relation to the project. The Committee resolved that it will direct its oversight work over the IFMS project to be based solely on official reports from the Department and public institutions and will await the completion of the forensic investigations and the conclusion of the audit process.
The briefing revealed that the department’s Internal Audit Review made a number of finds with internal risk assessments showing the lack of adequate controls in the IFMS payments. The briefing also indicated that the IFMS has been a standing agenda Item in the Audit Committee Agenda since 2008.
While the Committee is seriously concerned by findings from the Internal Audit, it appreciates that the Internal Audit function of the department is robust and functional and was able to pick up anomalies in relations to the project. The Committee further appreciates that corrective measures are already being implemented. Corrective measures already being implemented include the appointment of an Independent Forensic Investigation team which commenced its work on 01 October 2016, regular meetings between the audit committee and IFMS team as well as stringent monitoring of the implementation of the programme.
Following the briefing the Committee resolved it continues engaging with the Department on IFMS project as part of its work on ensuring expenditure adheres to efficiencies and effectiveness.
ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE STANDING COMMITTEE ON APPROPRIATIONS, MRS YVONNE PHOSA.
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