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For three years in succession the KwaZulu-Natal (KZN) Department of Education has not only received qualified audit reports but has also not managed to deal with inherent organisational challenges. As a result, the department has at worst, deteriorated in its ability to either improve processes and/or implement the existing government legislative and regulatory framework so as to ensure optimised performance and rapid, cost-effective and timeous service delivery.

As at 31 March 2014, the department had:

•     incurred irregular expenditure of R2, 68 billion as a result of noncompliance with supply chain management processes;
•     incurred unauthorised expenditure of R260, 33 million as result of overspending on certain projects; and
•     not updated the payroll system accurately, resulting in salaries being paid to personnel who had either resigned or been terminated continuing to receive salaries.

Recently, the Office of the Premier addressed the issues raised in the 2014 Office of the Auditor-General's report with the department. The outcome of this meeting was subsequently formally tabled to the Executive Council in a report dated 21 October 2014. Needless to say both forums were dismayed with the state of affairs in the KZN Education Department.

It is in light of the above context and other critical issues like the nonpayment of service providers on time as well as lack of proper fiscal controls that has led me to appoint a Committee of Inquiry.

This appointment was done in consultation with Treasury and the Portfolio Committee to assist my office in addressing these challenges. The Committee is mandated to finalise its process within three months and to provide me with a final report at the conclusion of its business.

I have appointed the Committee of Inquiry in terms of Regulation 20 of the Treasury Regulations issued in terms of the Public Finance Management Act No 1 of 1999 (PFMA) The Regulation provides that “when there is a matter of public concern or which pertains to the need for the efficient functioning of government, the President, or Premier of a Province, or the responsible member of the Executive Authority, has the duty and mandate to establish a Commission or a Committee”.

The challenges facing the department, as specifically outlined by the Reports of the Auditor-General and the Treasury Forensic Investigation, either immediately link to fiscal challenges of expenditure, or they ultimately result in outcomes that have a negative financial impact. Simply put, they also result in direct and indirect violations of the PFMA.

At the recent Education Portfolio Committee meeting of the KZN Legislature, which was held on 6 November 2014, members of the Provincial Legislature raised and expressed their grave concerns in respect to the findings of the Office of the Auditor-General and those of Treasury.

As a result of the reoccurrence of these challenges it was also apparent that there is not sufficient capacity within the department to deal with these challenges. I was therefore duty-bound, as the political head of the department, to take this extraordinary measure to deal with these challenges once and for all.

The committee is to generally investigate and advise my office on issues relating to addressing the consistent challenges of the department which have been discussed in paragraphs above. Its scope and mandate includes, but not limited to, all matters as raised in the Auditor-General's report. I have also received unconditional commitment from both senior management and general staff that they will support this process which, to all intents and purposes, is aimed at supporting their collective duty to ensure that the department functions efficiently and effectively.

I would therefore like to announce that Ms Gcwalisile Twala is the Chairperson of this committee. Ms Twala is an attorney by profession with an impressive track record and experience spanning over 20 years in disciplines within the legal profession. I have no doubt that she has the skill and experience to successfully guide this process. In this she will be ably assisted by three other committee members, namely, Mr Fenton Gastin, Mr Sibusiso Buthelezi and Mr Nkohla Jafta.

The committee will be reporting to me and senior management on a regular basis and I will be setting up a communication platform to keep all our stakeholders informed of progress made.

Issued by KZN Department of Education