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The Standing Committee on Public Accounts (SCOPA) has started to show its teeth today by recommending action to be taken against the Director General (DG) of Labour who presided over the Department’s poor financial management in the 2010/2011 financial year.

This would likely include steps against controversial government spokesperson Jimmy Manyi, who held the position of DG in the Labour Department from 2009 until his suspension from the position in June 2010, and Sam Morotoba, who was acting in the position following Manyi’s suspension.

The DA has been putting pressure on SCOPA to champion against the lack of accountability by officials responsible for the breakdowns in financial management and control that are resulting in unjustifiable leakages from the public purse. We have also been advocating for an escalation model that would ensure responsible parties are held to account.

The Public Finance Management Act (PFMA) allows for “disciplinary steps [to] be taken or criminal charges [to] be laid” against officials who, among other things, wilfully or negligently fail to maintain “effective, efficient and transparent systems of financial and risk management” and to “prevent unauthorised, irregular and fruitless and wasteful expenditure”. Yet charges are rarely laid in terms of this Act.

SCOPA recommended today that the Minister must take steps as set out in the PFMA against the director general who was the accounting officer in the Department of Labour in the 2010/2011 financial year, after the Auditor-General specifically highlighted failures of the accounting officer to:
Take effective and appropriate steps to prevent and detect irregular expenditure;
ensure that all payments due to creditors were settled within 30 days from receipt of an invoice;
conduct performance assessment for senior managers; and
ensure that funded vacant posts were timeously filled.
From 2009 to June 2010, this position was held by government spokesperson Jimmy Manyi. Manyi was suspended from this position in June following a complaint that he used an official meeting to promote his private interests. Manyi appealed the suspension, but was placed on special leave until his appointment as government spokesperson in February 2011.

Once this report is approved by the National Assembly, we will monitor progress on the actions as recommended by SCOPA.