Parliament, Tuesday, 9 November 2021 – The Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) is concerned with the Department of Cooperative Governance and Traditional Affairs’ continued high levels of fruitless and wasteful expenditure.
The committee today received a briefing from the Office of the Auditor-General (AG) on the Budgetary Review and Recommendations Report of the Department of Cooperative Governance and Traditional Affairs and its entities for the 2020/21 financial year.
The department has received a qualified audit opinion for two consecutive years which the AG attributes to the management’s inability to implement proper and timely record keeping controls. The AG also raised a concern with the accounting officer‘s inability to take appropriate action in relation to payments made to non-qualifying government employees on the Community Work Programme (CWP).
The committee is concerned with the department’s continuation of incurring high levels of fruitless and wasteful expenditure, having recorded an amount of R5 million relating to irregular payments of wages in the CWP. The department’s inability to manage the CWP has resulted in irregular expenditure to the value of R673.6 million in relation to payments made on expired CWP contracts, as well as the irregular appointment of some CWP implementing agents.
The committee further expressed its concern that these issues have not been resolved and that there is an audit finding relating to the lack of disciplinary steps taken against staff behind the irregular, fruitless and wasteful expenditure. Over the last two years, the committee has convened a series of meetings with the department in an attempt to address the challenges surrounding the CWP. These meetings have yielded no positive results as the committee is still experiencing challenges with the department failing to deal with its concerns.
The committee is also concerned with the Municipal Infrastructure Support Agent (MISA). The entity received a clean audit for a third consecutive year but has incurred fruitless and wasteful expenditure to the value of R525 862. The committee is also concerned with the entity’s under expenditure to the value of R130.8 million.
Also, the committee raised concerns over the delay in various incomplete water and sanitation projects, which negatively impact the communities throughout the country. The committee wants the department and entities to develop plans with clear timeframes and proper financial management to ensure that it meets its targets.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, MR FIKILE XASA.
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Email: fndenze@parliament.gov.za
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