The National Treasury has denied that spending by the Department of Home Affairs under its former director-general, Billy Masetlha, was irregular.
This contradicts a finding by the Auditor-General indicating the extension of Masetlha’s contract for a year to June 2002 was invalid, and the department’s spending, therefore, irregular.
The AG’s finding — after Masetlha failed to sign a new contract for the period — could have laid actions taken by the department during that period open to court challenge.
David Mmakola, a director in the treasury, told Parliament’s public accounts committee (Scopa) on Wednesday the definition of irregular expenditure made no reference to the status of an accounting officer. Where there was no contract signed between a DG and the state, different procedures would have to be followed other than labelling expenditure as irregular.
”But, clearly it does not fall within the definition of irregular expenditure,” he said.
The committee was holding a public hearing on the home affairs auditor-general report for 2001/02. Mmakola, however, acknowledged that the Public Finance
Management Act (PFMA) could be misinterpreted, and indicated the law would be amended to clear up possible confusion.
Public service and administration deputy director-general Alvin Phumudzo Rapea said the former DG had written to the department stating he accepted the Cabinet-approved contract, and that the conditions of his appointment were the same as during his previous tenure.
The fact that he had not signed a written contract was an administrative issue and did not affect his status.
”The spending was not irregular, he was the head of the department. Even if he refused to sign a contract, there is a disciplinary process that is followed (when a contract is not signed),” he said after the hearing.
Masetlha had fulfilled the role of director-general in line with a Cabinet decision.
”The only thing that was not done was to sign the contract,” Rapea said.
The former DG took up a new post as a presidential adviser in June last year after a stormy relationship with home affairs minister Mangosuthu Buthelezi. In October 2001, Buthelezi presented the parliamentary home affairs portfolio committee with a list of 64 complaints about his director-general, whom he accused of insubordination. – Sapa