Following the Auditor-General’s report which revealed the Gauteng the Department of Social Development submitted bogus statements on the performance of the department in 2023 and 2024 financial year, MEC Faith Mazibuko has warned management that both overspending and underspending would not be tolerated under her leadership.
Mazibuko made these remarks last week on Friday, while appearing before Parliament’s Social Development Portfolio Committee to answer questions on the department's annual performance report at the Gauteng Provincial Legislature in Johannesburg.
Reports indicate that Auditor-General Tsakani Maluleke found that the department spent R6.5 million irregularly, approved transactions without proper procurement processes and made material misstatements in its performance report for 2023 and 2024 financial year.
This was during the era of the then MEC Mbali Hlophe and head of department, Matilda Gasela.
The report also pointed out that the department underspent R554 million in the same financial year.
Meanwhile, Mazibuko, who was appointed in July this year, said the warnings were in the spirit of creating good governance, especially around promoting a culture of accountability and transparency in the public sector.
“Anything to this regard (over or underspending) will be penalised by withholding of performance bonuses and payment progression,” said Mazibuko.
She said in the event that there was a recurrence of such acts by the accounting officer, a recommendation will be written to Premier Panyaza Lesufi for possible dismissal.
Mazibuko stressed that this would indicate the commitment of the provincial government to prudent management of public resources.
“There is no justification by the department to overspend on allocated funds, and equally there is no justification for underspending while the people of Gauteng suffers from malnutrition and hunger.”
She said the Public Finance Management Act (PFMA) encourages accounting officers to constantly interact with their executive authorities, and if there is good communication between both of them, there will be no surprises when the financial year ends.
“The constant interaction will result in potential problems within programs, challenges in the implementation of projects, and challenges being detected early,” said Mazibuko.
“To complement the government's Basic Accounting System, management can also use the Provincial Treasury financial management package that will assist in the development of an accurate database.”
Additionally, Mazibuko said this will result in the department being in a good position as it advises the department in time of any irregularities in the accounting system.
“We hope that this will go a long way in assisting us to have correct statistics and usable information to allow proper spending.”
Earlier this year, non-profit organisations (NPOs), including shelters, children’s homes and disability organisations raised challenges they encountered with payment delays by the department.
Some had to shut down and cut services owing to the delay of payments.
Following this, Mazibuko expressed that she was encouraged about the progress being made in ironing out funding challenges with non-profit organisations.
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