The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The Gauteng COSATU province has learned with shock the auditor's reports on the financial performance of the various departments of the provincial government. It also includes a disclaimer in respect of one department and three entities. We have also noted with serious concern that the legislator is also not immune, as it has been financially unqualified with other matters raised by the auditor in nine of the departments and entities.
Department of health
Our election manifesto made a commitment that this term of government will prioritise health, to ensure that our people have access to the better health services. We are taken aback by the disclaimer that has been given to the Department of Health and in particular we note that the reasons advices by the auditor's report are as a result of the following issues:
Tangible Assets
- There are tangible assets that worth more than R93 412 219 that could not be verified.

- There are tangible assets that worth more than R52 825 926 that could not be revaluated due to insufficient evidence

- There are tangible assets that worth about R180 905 and R23 640 236 that could not be allocation and valuable

Intangible Assets
- The department could not recognise its computer software as required in the financial statements.

Employee benefits
- There are leave entitlements to the value of R705 409 000 that the departments could not account for.

- There is a lack of evidence for the housing loans of R60 985 000 issued that the department could provide sufficient evidence.

Irregular expenditure
- The department has failed to disclose an amount of R11 385 721 as an irregular expenditure and this is as a result of deviating from the tender process.

Expenditure
- The department could not provide evidence for an expenditure of R525 384 189 due to lack of record keeping, and as a result the auditor could not establish the completeness, validity and accuracy of the expenditure.

- The department could not provide evidence for an amount of R445 384 469 also due to lack of record keeping or that they followed section 38(1)(iii) of the PFMA.

Lease commitments and accruals
- The department could not also provide sufficient audit evidence due to poor record keeping and also to ensure that there are systems in place to ensure that all commitments are valid, accurate and complete and that all accruals and lease commitments are complete, and as a result the auditor could not then obtain sufficient evidence for an amount of R7 130 843 000, R 7 623 000 and R 667 140 000.

Compensation to employees
- The department could not provide the auditor with sufficient appropriate evidence for compensation of employees due to poor record keeping and as a results the department could not provide the auditor with evidence for payment of employees to the tune of R 7 170 036 000.

We have also noted with great concern and disappointment the fact that the following has also been noted by the auditor general:
- There was an unauthorised expenditure to the tune of R 1 070 655 000.

- There was an irregular expenditure to the tune of R 1 950 000 due to non-adherence of procurement process and this also involved the department of Public Transport, Roads and Works.

- There was a wasteful and fruitless expenditure to the tune of R2 200 000 as a result of defective work performed on the construction of facilities by the department of Public Transport, Roads and Works.

We have also noted that there was a serious material under spending of the budget in regard to the following critical issues:
- Emergency Medical Services and Programmes and Health Facility management to the tune of R49 654 000 and R220 965 000 respectively.

- HIV/ AIDS on conditional grants and the Hospital Revitalisation grants to the tune R68 175 000 and R35 552 000 respectively.

OSD
We also note that the department has:
- Underpaid employees for an amount of R 1 000 000 and also overpaid an amount of R7 953 000 as a results of OSD.

We have also noted that the auditor general has noted that the department has not been following the Public Finance Management Act and instructions issued by the National Treasury and a results the following has occurred:
- The department has failed to report goods with a value of more than a R1 million have been incurred without following due process.

- There are 13 contracts to the value of R38 865 750 that have been awarded without following competitive bidding process.

- There are payments amounting to the value of R636 508 000 that were not effected within 30 days of receipt of invoice and this resulted in the surrender of R407 424 000 and this would not have resulted in an authorised expenditure incurred.

- The department has failed to comply with regulation 17.2 on the retention of source documents.

- The accounting officer did not submit an annual report within five months of the end of the financial year to the relevant treasure and executive authority as required by section 40(1) of the PFMA.

- The department did not also complied with the treasury regulation 15.8.1 as the surplus money for the previous year was only returned in March 2009.

- The treasure regulation was not complied with on the Health Information System.

In the view of COSATU in the Gauteng Province these matters are of serious concern and some may amount to corruption and personal enrichment by some within the department of health. We hence would like a proper investigation on all these matters by an independent body that should be constituted very urgently.
We cannot afford at this phase of our national democratic revolution to have a department that can be disclaimed by the auditor general for the reasons articulated above. We have noted that there are some steps taken by the department including an audit plan that has been drafted to ensure that these issues are addressed in the future and that they do not reoccur.
COSATU welcomes these initiatives, but the fact is that the role of the auditor is to reflect on the historical occurrences and we believe that the MEC and Government as a whole has a responsibility to ensure that those involved in this matter are subjected to serious action. Hence our call for the MEC and the Premier to act before it is too late. It is time that our Gauteng Government must act against all forms of corruption.
We believe there is sufficient evidence for heads to roll and the Department of Health presents an opportunity for the Government to demonstrate without doubt that it is committed to root out corruption in this Province. We are determined to ensure that those who are responsible are brought to book as it also demonstrates that some of the managers are acting with impunity.
We are still analyzing the other departments and entities and will also issue a statement accordingly.