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Gauteng govt ‘committed to correct spending of public funds’

24th January 2012

By: SA News

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The Gauteng Provincial Government says it has put in place measures to ensure the correct spending of public monies.

“We are committed to a clean audit. We are committed to spending resources in a manner we can account for,” Gauteng Premier Nomvula Mokonyane said on Monday.

This comes as media reports this weekend said the Auditor General’s report revealed the province had wasted R6.6-billion. According to the provincial administration, the reports lacked contextual information.

The Gauteng government said R1.4-billion was unauthorised expenditure, which is defined as an overspending of a vote, while R4.8-billion was irregular expenditure, which is defined as expenditure other than unauthorised expenditure and R400-million was in fruitless expenditure.

According the provincial government, the biggest contributor to the R4.8-billion irregular expenditure was the Health and Social Development Department at R2.2-billion, the Department of Roads and Transport at R2.2-billion and the Infrastructure Department at R242-million.

Mokonyane said the MECs for Finance and Health as well as herself would take responsibility to provide leadership in the provincial Health Department. She also announced that the Social Department has been split from the Health Department.

Since December last year, the provincial government has paid R400-million to its owed service providers of the Department of Health. These include service providers that have not been paid since 2007. The government wants to have settled accruals by 2014.

The R2.2-billion incurred in irregular spending by the Department of Roads and Transport was due in part to the initiation of an investigation into tenders, while R1.6-billion of the amount was paid to bus service providers in the 2010/11 financial year.

The provincial government has been in collaboration with the Auditor General, the Department of Finance and National Treasury to sustain interventions.

Additionally, the Department of Infrastructure has put in place remedial action such as the implementation of a proper financial management system and revamping its supply chain management processes.

Mokonyane also received a clean audit award from Auditor General Terence Nombembe for the province receiving a clean audit for the second time in a row.

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