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The festive season has arrived bringing with it family, friends, and the hot South African summer! Hosting over the holidays can become quite expensive, especially with food and drinks to accommodate, but fortunately, there is a way to keep everyone refreshed and healthy this festive season without breaking the budget. “This really is such a …
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AG reports overall improved audit outcomes
The Auditor-General of South Africa (AGSA), Tsakani Maluleke, has reported an overall improvement in the national and provincial government audit outcomes.
Tabling the 2022-23 general report for national and provincial departments, entities and legislatures in Parliament on Wednesday, the AG said the outcomes reflect an overall improvement over the term of the current administration, now in its fourth year.
However, she pointed out that there are still weaknesses in planning, monitoring and reporting on service delivery; challenges in infrastructure management, and increasing pressure on the fiscus due to a lack of prudence in spending.
“Over the administration’s term, we have seen some encouraging signs of improvement in the ability of national and provincial government to transparently report on their finances and performance, and to comply with key legislation.
“However, those auditees with the greatest impact on the lives of South Africans and on government finances, which we refer to as ‘high-impact auditees’, are lagging behind on financial and performance management disciplines. This is placing further pressure on government finances,” Maluleke said.
She said these high-impact auditees comprise departments, public entities and State-owned entities that are collectively responsible for 85% (R2.64 trillion) of the expenditure budget.
They contribute to delivering health services, skills development and employment, infrastructure development, safety and security, water and sanitation, energy, and environmental and financial sustainability.
“Overall, the audit outcomes of both departments and public entities improved and more auditees improved their audit outcomes each year of the administrative term than regressed. In 2022-23, the net improvement was 37 auditees (9%) – the biggest movement over the four-year period. Provincial government showed a net improvement of 44 (27%) and national government a net improvement of 34 (15%),” the AG said.
Clean audits
The AG noted that the number of clean audits continues to increase every year due to significant effort and commitment by the leadership, officials and governance structures of these institutions.
“A clean audit is not always an indicator of good service delivery. However, a clean audit positions an auditee to transparently communicate to citizens on whether and when their needs will be met through accurate records, which also enables informed decisions by the different role-players in the accountability ecosystem.
“We have seen that auditees with institutionalised controls and systems to plan, measure, monitor and account for their finances and performance, and to stay within the rules, often also have a solid foundation for service delivery to the people of South Africa,” Maluleke said.
She re-emphasised the importance of a clean audit, which shows that an auditee’s financial statements and performance report give a transparent and credible account of its finances and its performance against the targets that had been set.
It also means that the auditee had complied with the important legislation that applies to financial and performance management.
The 147 auditees (35%) that achieved clean audits in 2022-23 managed 16% of the R3.10 trillion expenditure budget in national and provincial government.
In addition, the 162 auditees (39%) that received unqualified audit opinions with findings managed 48% of the budget.
“It is commendable that these auditees that make up 74% of the auditee population are able to publish credible financial statements, which is a positive development that must be encouraged. This augurs well for accountability,” the AG said.
She also commended the 53 auditees (36%) that have managed to retain their clean audit status over the administrative term through practices such as institutionalising and monitoring key controls (including preventative controls), and by having all role players in the accountability ecosystem committed to fulfilling their monitoring, governance and oversight roles.
She further acknowledged the 37 auditees that are very close to obtaining a clean audit, and only need to address one finding on either the quality of their financial statements or on their performance reporting.
“Some of these auditees have been working towards this goal for many years and we encourage them to persevere in overcoming the last hurdle. If they manage to do so, we expect to see an increase in the number of clean audits for 2023-24. This will set a strong foundation from which the next administration can build when its term starts in 2024-25,” Maluleke said.
Disclaimed and adverse outcomes
Overall, the number of auditees with disclaimed audit opinions decreased.
Maluleke cautioned that if any of the 31 auditees with outstanding audits also receive disclaimed opinions, the improvement in this area will be less significant, but should still be acknowledged.
Nine of these audits were subsequently finalised, with an additional two auditees receiving disclaimed audit opinions.
Maluleke reported an increase in adverse audit opinions due to three public entities moving from a disclaimed opinion last year to an adverse opinion in 2022-23. – SAnews.gov.za
nosihle
Wed, 11/29/2023 - 12:16
Delay in delivery of infrastructure projects affects service delivery
The Auditor-General of South Africa (AGSA) Tsakani Maluleke says all too often infrastructure delivery projects which have been delayed, are costing more than what was initially planned or are of poor quality.
In the 2022-23 financial year, the AGSA audited 137 infrastructure projects, focusing on critical infrastructure, including health facilities, schools, housing, roads and railways, water infrastructure, and government buildings such as police stations.
“Our audit work incorporated numerous site visits by our multi-disciplinary audit teams, who applied their expertise to inspect project progress and quality. We reported findings on 112 (82%) of the projects that we visited. There are also delays in newly built infrastructure,” Maluleke said.
She said when auditees, especially high-impact auditees, do not properly manage their performance, finances and infrastructure; it directly affects the delivery of key government programmes that are intended to improve the lives of South Africans and to alleviate hardships stemming from tough economic conditions and poverty.
“Wasted money and resources means reduced funding for service delivery programmes and, eventually, a greater burden on taxpayers,” the AG said.
She made these remarks in Parliament on Wednesday, while tabling the 2022-23 general report for national and provincial departments, their entities and legislatures.
Maintenance of government properties
Maluleke noted that many government properties are in a poor condition because of the sector’s reactive approach to maintenance.
“Most maintenance work is only done in response to emergency requests and little time or budget is spent on preventative maintenance,” the AG said.
The public works sector is responsible for maintaining government properties, including health facilities, police stations and buildings that accommodate departments.
She said government officials and the public continue to use properties that are in poor condition, which lowers the effectiveness of the working environment and puts the safety of officials and the public at risk.
“There are currently 2 394 unoccupied government properties, most of which have not been maintained and are in a bad state. Even though these properties are not used, costs such as property rates and taxes still need to be paid.
“When there are not enough fit-for-use properties available to departments, the Property Management Trading Entity needs to enter into lease agreements – which could have been avoided if properties had been properly maintained,” Maluleke said.
The AG further cautioned that such lease agreements are often costly to government because of high annual increases and higher-than-average market rates being paid.
She attributed the failures in delivering, maintaining and safeguarding infrastructure to four matters that need urgent attention:
Audit outcomes of service delivery auditees and key public entities
The AG said the 193 high-impact auditees generally have poorer audit outcomes than other auditees and struggle with performance, financial and infrastructure management.
These high-impact auditees comprise departments, public entities and state-owned entities that are collectively responsible for 85% (R2.64 trillion) of the expenditure budget.
They contribute to delivering health services, skills development and employment, infrastructure development, safety and security, water and sanitation, energy, and environmental and financial sustainability.
“Auditees from this group also account for 48% of all outstanding audits and 65% of all modified audit opinions; in other words, qualified, adverse and disclaimed opinions. In total, 139 of the 193 high-impact auditees were required to report on their performance in 2022-23,” she said.
Those excluded were the 50 technical and vocational education and training colleges, the Property Management Trading Entity, Water Trading Entity and Commission on Restitution of Land Rights, whose performance is reported in the performance reports of their parent departments.
“We raised material findings on the reported performance information of 127 (42%) of these auditees, as well as material findings on compliance with key legislation at 76% of the 178 auditees with completed audits.”
Call for improvement in service delivery
The AG has called for improved service delivery enabled by capable, cooperative, accountable and responsive institutions delivering on their mandates.
“At a time of economic hardship in which the public’s demands for service delivery and accountability are increasing, there is an expectation that national and provincial government will do everything in their power to get the most value from every rand spent and to manage every aspect of their finances with diligence and care.
“This is, however, not what we have seen at some departments and public entities during our audits. Improved service delivery and the responsible use of the limited funds available will only be possible when we have capable, cooperative, accountable and responsive institutions that deliver on their mandates.”
She urged all roleplayers in the accountability ecosystem, particularly those with direct control over service delivery, to work deliberately and with urgency towards achieving a culture of accountability, transparency, integrity and improved service delivery for all South Africans. – SAnews.gov.za
nosihle
Wed, 11/29/2023 - 12:26
AG: Unauthorised expenditure remains high
The Auditor-General of South Africa (AGSA) Tsakani Maluleke says unauthorised expenditure at departments remained high throughout the administrative term, totaling R28.22 billion over four years.
Tabling the 2022-23 general report for national and provincial departments, their entities and legislatures in Parliament on Wednesday, Maluleke said in the 2022-23 financial year, such spending amounted to R4.59 billion.
Collectively, accounting officers and authorities managed an estimated expenditure budget of R3.10 trillion in 2022-23.
“The irregular expenditure disclosed in 2022-23 totaled R63.37 billion, with high-impact auditees being responsible for R53.77 billion (85%) of this amount. These amounts might be incomplete, as auditees no longer have to include irregular expenditure incurred in prior years or the closing balance of irregular expenditure in their financial statements,” the AG said.
She said when departments overspend their budgets, they disclose this as unauthorised expenditure.
“If this type of expenditure is condoned, it means that the department needs to either find more money or absorb the overspent amount, which reduces the available budget for the following years,” Maluleke said.
Unlike departments, which must submit their budget vote to parliamentary committee hearings to be approved, public entities do not have a separate vote and thus disclose their overspending as irregular expenditure.
In 2022-23, the irregular expenditure incurred due to overspending was R0.90 billion.
High-impact auditees were responsible for R4.35 billion (79%) of the R5.49 billion total overspending across departments and public entities in 2022-23.
Material irregularity process sees recovery in financial losses
Maluleke has reported that through the material irregularity (MI) process, accounting officers and authorities have taken action to prevent or recover financial losses of R2.55 billion since 2019, with some of this amount still in the process of being recovered.
“We are pleased that the MI process is proving to be effective in enforcing accountability and protecting state resources. Departments and public entities can direct the recovered funds towards service delivery, enabling government to achieve its strategic priorities,” Maluleke said.
From 1 April 2019 - when the amendments to the Public Audit Act became effective and the AGSA began implementing the MI process - until 30 September 2023 - the cutoff date for MIs to be included in the latest general report- the audit office identified 266 MIs.
“We estimate the total financial loss of the 240 MIs that involved a material financial loss to be R14.34 billion. The 26 MIs with an impact other than financial loss involved material public resources not being used (most often health facilities), harm to the general public due to infrastructure neglect and poor-quality service delivery, and harm to public sector institutions mainly because of the non-submission of financial statements.
“We used this enforcement tool to spur accounting officers and authorities into action to strengthen internal controls, institute disciplinary measures, stem resource leakage arising from non-compliant procurement processes, recover funds lost through duplicate payments and overpayments to suppliers, safeguard assets, and improve the use of public resources such that they benefit citizens,” Maluleke said.
She said that where the MIs were not dealt with swiftly or with the required seriousness, her office included recommendations in audit reports, took remedial action or referred matters to relevant public bodies for investigation, where appropriate.
Financial management
The AG cautioned that when government is not careful with its spending practices, this reduces the already limited funds available.
“The main reasons for the continuing financial losses and waste that we observed, especially at high-impact auditees, were poor payment practices, uncompetitive and uneconomical procurement practices, limited value and benefit for money spent, poorly managed government properties and accommodation leases, and weaknesses in project management.
“Government’s budget for service delivery activities is reduced by claims made against departments, and by auditees overspending their budgets and being in poor financial health. Ailing institutions, such as the state-owned enterprises, place further pressure on government by needing bailouts and by creating potential future obligations as a result of guarantees,” Maluleke said. – SAnews.gov.za
nosihle
Wed, 11/29/2023 - 12:53
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The National Department of Health (NDOH) , in collaboration with provincial health departments, the World Health Organization (WHO) in South Africa and partners such as John Hopkins Program for International Education in Gynecology and Obstetrics (Jhpiego), the National Institute for Communicable Diseases (NICD) and the Centre for Disease Control and Prevention (CDC), convened the National International Health Regulations (IHR) Committee to review progress toward IHR (2005) implementation. The review meeting took place from November 20 to 22, 2023, at The Capital Menlyn Maine Hotel in Pretoria, Gauteng Province.
This review meeting was a follow up of the National Action Plan for Health Security (NAPHS) meeting which was held May 25 and 26, 2022 in South Africa. The review's objectives were to:
The facilitators included technical officers from WHO South Africa, the NDOH, and the NICD. Participants were multi-disciplinary and included the National IHR Focal Points, Epidemiologists, Communicable Disease Control Coordinators, Disease Surveillance Officers, Laboratory personnel, Port Health Officers, Environmental Health Practitioners from the Department of Health and Border Management Authority, Food Control experts, Antimicrobial Resistance Specialists, Animal Health, Infection Prevention and Control experts, State Security Civil Aviation Authority, and experts from other departments and partners critical to the implementation of the IHR in the country.
During the meeting, participants were updated on the WHO perspective on IHR (2005), as well as the country road map. Participants were also taken through the prioritization, assessment synthesis for quality planning, costing, resource mapping, and budget advocacy processes. The review methodology included plenary updates on the progress report for 2022, as documented on the eSPAR, as well as the status of NAPHS implementation. The participants then worked in groups corresponding to their respective technical areas to update the eSPAR for 2023, review the NAPHS matrix, and develop the annual operational plan for 2024. The recommendations from the first JEE, the after-action review reports, simulation exercises, the one-health national bridging workshop, and the IDSR strategic plan served as the source documents for updating the 2023 eSPAR and the 2024 NAPHS AOP.
This review meeting provided an opportunity for stakeholders to improve their knowledge of IHR and to commit to jointly strengthening the country's preparedness and response by applying lessons learned from recent emergencies and outbreaks such as COVID-19, cholera, and listeriosis outbreaks. The following proposals from the National IHR Focal Point were adopted by the participants:
Distributed by APO Group on behalf of World Health Organization (WHO) - South Africa.
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Gauteng officially opens upgraded K73 Allandale Road
Gauteng Premier Panyaza Lesufi has officially opened the upgraded K73 Allandale Road, in Midrand, Johannesburg.
“Gauteng as the economic hub of the country cannot be a province with lots of potholes or roads that are not well maintained. I am excited that this project was done within budget,” Lesufi said on Wednesday.
The multi-million rand road project involved the construction of a dual carriageway of the new road section between Montrose and Allandale Roads, upgrading of Woodmead Drive and Allandale Road as well as the construction of a bridge along the road.
The upgrade of the road has made a significant improvement in traffic flow by alleviating traffic congestion, making commuting and vehicle mobility smoother and more efficient around the Midrand area.
The project provided jobs to local communities and saw 34 small, micro and medium enterprises (SMMEs) sub-contractors awarded construction work such as kerbing, paving, concrete channels, stormwater pipes, subsoils and ancillary works, plant hire, training as well as security.
“If a municipality can’t fix their roads….if a municipality is busy with squabbles, we will take over their function and fix the road.
“Beyond 2024, all spheres of government must review laws and regulations in improving infrastructure in government. We are building more roads and even the rules and regulations must be agile to accommodate changes,” Lesufi said. – SAnews.gov.za
nosihle
Wed, 11/22/2023 - 14:00
Urgent call to address gaps in shelters supporting victims of gender-based violence
Lack of sufficient funding, transportation for victims of gender-based violence, lack of social workers in some facilities, shelters’ compliance with the norms and standards were some of the gaps identified on the first day of the two-day National Shelter Indaba currently underway in Sandton.
Delegates heard that half of the shelters’ allocated budget was spent on salaries and this stretched the finances of shelters that require more funding to efficiently render services to victims of gender-based violence.
One of the shelter managers, Sindisiwe Msimango from Mpumalanga, indicated that most shelters struggle with transport.
“Transport is a problem for shelters, as victims must be transported to and from police stations and health facilities. Nowadays, perpetrators of GBV are using sophisticated ways to track their victims and this poses a risk for both the victims and social workers,” she said.
She said the lack of security and delays in the payment of subsidies from government also posed a huge threat to the safety of persons working and living in the shelters.
Rose Bailey, from a shelter in the Northern Cape province, asked for shelters to be treated with dignity and not be seen as charities, as they play an important role in saving lives and restoring women’s mental health. She appealed for more attention to be given to the work provided by shelters.
Joining the Indaba virtually, former Deputy President of South Africa, Dr Phumzile Mlambo-Ngcuka, reminded delegates that GBVF was declared a pandemic and said that it should be treated the same way as COVID-19 where everyone, including governments, were playing their part.
She indicated that more often than not, women continue to be failed by the system because when they report abuse “their cases are not efficiently prosecuted, and this discourages them”.
Providing solutions to some of the challenges by shelters, Uber SA shared that they partnered with the National Shelter Movement of South Africa to provide safe transportation for victims of gender-based violence and women in general.
Uber SA senior operations manager, Collen Mphabantshi, told the summit the safety of women is at the centre of their business.
“Uber SA strives to ensure that Uber users can travel under safe conditions with, amongst others, access to pre-onboarding applications such as Driver Screening, Vehicle Inspection and Driver Profile,” he said.
He revealed that to date, Uber South Africa has successfully transported 6 715 women and their children to places of safety through the National Shelter Movement of South Africa.
Social Development Minister Lindiwe Zulu appealed to the private sector to come to the table and assist in supporting the work that is done by government through shelters.
“Often in these gatherings, the private sector is not sitting around the table. We call upon the private sector to play a role by availing suitable buildings and infrastructure which can be used as shelters for victims and survivors of gender-based violence and femicide,” Zulu said.
The Minister said that shelters for victims of violence and crime have been a central and a critical resource providing care, safety, support, opportunities for healing and an understanding of the dynamics of abuse to South African women and children.
“Shelters have provided a much-needed refuge where women cannot only be safe but take stock of their lives and receive the emotional support needed to make critical decisions. They also play a significant role in interrupting and breaking the cycle of violence,” she said.
The Department of Social Development has allocated more than R211 million for a period of four years towards 134 shelters rendering victim support services across the country.
The Minister reported to the Indaba what the department had done since last year’s gathering, including the development of an inter-sectoral shelter policy for victims of violence and crime.
She revealed that during the 16 Days of Activism for No Violence against Women and Children, the department will launch another shelter in the North West province. – SAnews.gov.za
DikelediM
Wed, 11/22/2023 - 12:13
South Africa signs loan agreements to support Just Energy Transition
National Treasury has announced that South Africa has signed bilateral loan agreements with the World Bank, German state-owned development and investment bank Kreditanstalt für Wiederaufbau (KfW) and the African Development Bank (AfDB) to support South Africa’s Just Energy Transition.
The concessional financing includes a loan of some $1 billion from the World Bank, some €500 million from KfW and a further $300 million from the AfDB.
“The loans provided by [KfW] and the [AfDB] follow their partnership with the World Bank on the second Development Policy Operation DPO to support South Africa’s commitment to the just transition for a low-carbon and resilient economy. These are sovereign loans provided directly to the National Treasury for general budget expenditure purposes.
“The financing facilities from the three development institutions are in line with the National Treasury’s funding strategy to diversify its funding mix for international borrowing and access concessional financing instruments offered by the development partners to support government’s key reforms under climate change and the electricity sector.
“These facilities also enable the National Treasury to raise funding at very affordable rates which help to reduce the government public debt,” Treasury said in a statement.
The department expressed its gratitude to the three institutions.
“These agreements signify and reinforce the excellent collaborative efforts between the Government of Germany, World Bank and AfDB and our government, that has ensured the successful conclusion of the loans,” the statement concluded. – SAnews.gov.za
NeoB
Wed, 11/22/2023 - 11:27
After seven years, the project is under investigation
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Zikalala to host Property Sector Conference
Public Works and Infrastructure (DPWI) Minister, Sihle Zikalala, is expected to address property sector participants in a conference to be held in Cape Town, Western Cape.
The Property Sector Conference will be held on Thursday.
As part of the Minister’s strategic engagement, he will start by visiting some of the hijacked buildings in Cape Town before outlining various strategies currently being developed by the DPWI to optimise the utilisation of state-owned buildings, curb illegal occupation and hijacking of buildings, improving energy efficiency and the discontinuing of total reliance on private leases.
Zikalala will also articulate the department’s plans regarding the ballooning government lease portfolio and how to further maximise revenue generation for the department.
Some of the key focus areas the Minister will address include the transformation of the property sector, ensuring that DPWI’s partnership with the private sector in delivering quality accommodation, is within budget and at a reasonable time.
The conference is aimed at engaging stakeholders on various challenges facing the department on delivering on its legislative mandate to be the real estate agent of South Africa and, therefore, address property industry players on the key role they ought to play in collaboration with the department. – SAnews.gov.za
Edwin
Mon, 11/20/2023 - 15:23
The Joint Standing Committee on Defence has called on current South African National Defence Force members to reconsider their resistance to the increase in their contributions to ensure that the Regular Force Medical Continuation Fund (RFMCF) remains viable and sustainable. The committee is concerned that the sustained low contribution model will have dire consequences for members when they retire. The envisioned balance will ensure quality medical services upon retirement.
“While the committee acknowledges that the RFMCF is a private entity, it is important to ensure the viability of the fund because it ensures the wellbeing of members after retirement. The welfare of our members, active or retired, is important,” said Mr Cyril Xaba, the co-Chairperson of the committee.
While the committee welcomed the fund's improved financial management and governance, it emphasised that its funding model should be reconsidered in the light of the cost of healthcare, which is above inflation in most cases.
The committee also highlighted the consequences of weaknesses within the South African Military Health Service (SAMHS), which directly impacts on the fund's viability and which has resulted in the increased use of the private sector. A functional SAMHS should be providing quality healthcare to all its members, both active and retired. “We have been emphatic about the need to resolve challenges facing the SAMHS to ensure that it is enabled to provide adequate support to all members and also save the fiscus excessively high private medical costs,” said Mr Mamagase Nchabeleng, the co-Chairperson of the committee.
Meanwhile, the committee unanimously supported the President's decision to deploy 3 300 South African National Defence Force (SANDF) members for service in cooperation with the South African Police Service (SAPS) to combat crime and maintain and preserve law and order under Operation Prosper. The SANDF deployment is part of the security cluster's efforts to address the prevailing high level of brazen organised crime and illicit mining.
While the committee supports the deployment, it is concerned that the unfunded mandate will have an impact on the Department of Defence's baseline budget, especially in light of further budget cuts. Despite this, the committee acknowledged that illegal mining is a serious challenge and requires the active participation of all to defeat it.
The committee further highlighted that the SANDF deployment is a short-term solution and that broader solutions must be developed to deal with this crime.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Families living in crumbling houses near the river bank say Gauteng government promised to relocate them years ago
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