Parliament, Thursday, 14 May 2020 – The Portfolio Committee on Social Development has expressed its appreciation for the improved audit reports of the Department of Social Development, the South African Social Security Agency (Sassa) and the National Development Agency (NDA).
The committee has noted that actions taken by the department to improve its oversight over its entities by establishing a joint executive committee co-chaired by the Acting Director-General and the CEOs of the two entities. It has also noted actions taken by Sassa to address financial misconducts that resulted in R1.8 billion irregular expenditure, including the R316 million from Cash Paymaster Services (CPS).
The committee is also pleased to hear that all the supply chain management (SCM) findings in relation to non-compliance with SCM’s prescripts have been resolved. It is, however, concerned that interventions to address audit findings in relation to information technology, the department reported them as work in progress. The committee has instructed the department to resolve them or provide specific dates on when they will be resolved. It has also instructed the department to ensure that all issues raised by the Auditor-General are resolved within the next financial year.
The committee is also pleased that Sassa finalised 282 cases of irregular, fruitless and wasteful expenditure amounting to R144 million. It has welcomed that consequence management was effected against the implicated employees through disciplinary action. The committee believes that this kind of action should be the norm in such cases. It, however, cautioned that actions taken against implicated employees should match the offense.
Another intervention the committee appreciates is the integration between Sassa and the South African Post Office (Sapo) system for cash payment that is under development, to be completed during the 2020/21 financial year. The committee understands that the interim process is already being implemented, while engagements are ongoing for the permanent solution.
The committee has noted the appointment of the chief financial officer by the NDA as per the Auditor-General’s recommendation. The committee hopes that all key positions in the department will be filled in as soon as possible, as some date as far back as 2017.
Although the committee is pleased with the improvements from the department and its entities, it believes that more should be done to fully address the concerns of the Auditor-General so that these findings don’t occur again.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT, MR MONDLI GUNGUBELE.
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