Adverse audit outcomes and material irregularities found at the Department of Defence (DoD) and the Department of Military Veterans (DMV) by Auditor General (AG) Tsakani Maluleke do not cut the mustard with Parliament’s watchdog committee on public expenditure.
Following an AG briefing to the Standing Committee on Public Accounts (SCOPA) on 19 November, the committee – by way of a statement – “resolved” to call Minister of Defence and Military Veterans, Angie Motshekga, whose responsibilities include Denel since the demise of the Department of Public Enterprises (DPE), to respond to “issues” emanating from the audit outcomes.
The departments of defence and military veterans have obtained adverse audit outcomes in consecutive audits with neither the apparent willingness nor ability to improve; a string of material irregularities in which senior officials failed to hold those responsible accountable either for maladministration, malfeasance or failure to meet performance objectives; a lack of comprehensive audit action plans to address past findings; lack of consequence management; and deterioration of the DoD’s assets and capabilities, the AG said.
The Auditor General’s reports for the Department of Defence and Department of Military Veterans were qualified with findings – these include audit evidence not being made available due to projects being ‘sensitive’, certain assets not being locatable, and not all irregular expenditure being included. Issues were also found with the compensation of employees.
The Auditor General found unauthorised expenditure to the tune of R3.37 billon at the DoD in the 2023/24 financial year (due to overspending on the compensation of employees budget) along with fruitless and wasteful expenditure totalling R51 million (amongst others, this included three members registered to attend a Falcon 900 course who never pitched).
Irregular expenditure in the Department of Defence in 2023/24 amounted to R338 million (and R8 million for the DMV). R170 million of this was from procurement laws not being followed when concluding a bilateral contract with Cuba on Project Thusano. R69 million was for a winning bidder not complying with mandatory criteria on an aircraft fuel and airport services contract. R46 million was due to no transparent processes being followed when entering into a lease agreement for the St George’s Hotel complex. R51 million in irregular expenditure was from the DoD not complying with supply chain management regulations.
Tellingly, the briefing and presentation to SCOPA notes the closing balance of fruitless and wasteful expenditure “continues to increase”. The AG added that there were delays in completing investigations into fruitless and wasteful expenditure, and a lack of consequence management.
The AG urged the DoD to revise its accountability framework, address material irregularities, foster a culture of consequence management, and fill key vacancies.
Motshekga, according to a Parliamentary Communication Services statement, can expect a formal invitation from SCOPA during the course of the week of 18 to 22 November to “explain steps she is taking to improve what is “clearly a crisis of accountability and funding”.
