Public Works and Infrastructure Minister Dean Macpherson has announced that the department was unable to submit its 2023/2024 audit results to Parliament ahead of the legislated 30 September deadline.
This was due to both the Property Management Trading Entity (PMTE) and the Independent Development Trust (IDT) being unable to complete their financials.
The Minister has affirmed that the audit results for the 2023/2024 financial year, which ended in March, three months before he was appointed, should be submitted to the Speaker of the National Assembly and the Chairperson of the NCOP by 30 October.
He said work is underway to improve accounting practices, including working closely with the Auditor General moving forward.
“My view is that the delay in submitting the audit statements to Parliament is completely unacceptable and which could have been avoided had both subsidiaries been in a position to produce interim results which would’ve empowered the Auditor General to highlight any issues ahead of time,” Macpherson said in a statement on Tuesday.
“However, action was taken to remedy the situation and it would be irresponsible to submit results without including PMTE and IDT which represents large parts of the department’s expenditure.
“Furthermore, I am advised that the results to be presented for the 2023/2024 financial year, before I was appointed, are likely to paint an unacceptable culture of weak internal financial controls, problematic tender processes and insufficient audit oversight.
“However, reforms are already underway to start the journey towards financial accountability and improved accounting practices,” the Minister said.
Macpherson said as part of the reforms being introduced, the department is strengthening collaboration with the Auditor General of South Africa (AGSA) to ensure more regular evaluations of the department’s financial statements and the progress being made.
“Furthermore, several measures have been put in place to prevent the misuse of public funds. These include revoking the authority for officials to spend up to R20 million without the approval of an accounting officer and initiating a skills audit at the Senior Management Service (SMS) level to confirm that the department has the required expertise in place.
“In a letter to the National Assembly Speaker and National Council of Provinces Chairperson, where I explained the cause of the delay, I emphasised that we are working tirelessly to ensure that a situation like this one does not occur again in the future to adhere to the legislated imperatives of transparency and oversight.
“Parliament plays an essential role in helping us lay the foundation of a stronger Department Of Public Works and Infrastructure because by working together it will be possible for us to Build South Africa,” the Minister said. – SAnews.gov.za
