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 Department of Justice and Constitutional Development (DoJCD) must introduce a number of basic controls to improve their management of third party funds.

This morning, the DoJCD briefed Parliament’s Standing Committee on Public Accounts (SCOPA) on their management of the approximately R3 billion in maintenance money, court fines, bail and other funds received through their 496 bank accounts on behalf of beneficiaries.

Whilst there has been significant progress in the reduction of unclassified receipts, the DoJCD still have a shortfall of R79.9 million in terms of receipts and claims against these funds. They currently have R175.8 million in their accounts, but are unable to determine the source of these funds.

The DoJCD must manage this money as if it is their own. I will be writing to the Director General of the DoJCD to recommend three basic controls which must be introduced as a matter of urgency:

• The Department must be able to identify the source and intended beneficiary of every payment into their accounts. This can be fixed by introducing simple deposit requirements, which compels all depositors to quote an agreed upon reference number.
• There must be a rationalisation in the number of bank accounts used for third party payments. The 496 accounts currently maintained for this purpose introduce unnecessary costs and complexity.
• The Department must re-negotiate the terms of the bank accounts held. As it stands, the bank charges on their accounts with South Africa’s four biggest commercial banks outstrip the interest earned on their significant cash deposits.

The bulk of third party funds are intended for approximately 250 000 maintenance beneficiaries – vulnerable members of our community who deserve vigilant management of the funds intended to support them in maintaining a minimum standard of living. The Department must take appropriate steps to fix the current set of basic blunders.