Barry Streek
Financial disarray in the government’s secret services and secret funds, reminiscent of the apartheid era, has been uncovered by Auditor-General Shauket Fakie in two reports tabled in Parliament this week.
The reports show the transfer of R51-million of secret funds to the police without the approval of Minister of Finance Trevor Manuel, overspending of R1,9-million by the National Intelligence Agency (NIA) and the payment of R1,5-million in travel allowances to 42 NIA members who had not made any claims.
The financial management of NIA’s special projects unit was so weak that the matter was handed over to the Directorate of Serious Economic Offences through the National Director of Public Prosecutions.
“There was a clear case for departmental disciplinary steps against at least one member who had failed to comply with the relevant financial and other control regulations,” said Fakie.
In one covert NIA unit there appeared to have been management override of control systems and the manager in charge seemed to have little or no knowledge of his financial responsibilities or how to utilise “front structures”. In another covert unit financial controls were “very weak” and seven signed blank cheques were found in the possession of the financial officer.
Fakie’s report for the secret services account, related departmental accounts and the security services special account was for the 1999/ 2000 financial year.
Helmut Schlenter, spokesperson for the Ministry of Intelligence, said in the report for the following financial year Fakie had reported considerable progress in the management of the secret services and as soon as Lindiwe Sisulu took over as minister she had instituted strategic framework for good governance.
More than 80% of the administrative reforms had been put in place and in terms of the Public Management Finance Act the intelligence agencies were more advanced than many other government departments, Schlenter said, adding that Sisulu had ordered the closure of all covert units.
Fakie also said in his report on the special defence account for the 1999/ 2000 financial year that 11 defence contracts were amended or cancelled without counter-performance, with negative financial implications of R7,9-million. This included R6,9-million in unavoidable cancellation costs in four cases where the defence force was forced to cancel orders or items.
A payment of R16,6-million commission, 43% of the total, for the sale of Puma helicopters was investigated by Armscor in 1994 and the Directorate of Serious Economic Offences. Although the attorney-general indicated that the prosecution would commence before the end of 1999, it has not yet started.