Mpumalanga’s Department of Public Works this week sought to dismiss a report by the provincial treasury that uncovered financial mismanagement, inefficiency and management incompetence in the department.
The Mail & Guardian last week revealed the details of the report by the treasury, which painted a gloomy picture of widespread misconduct, poor management controls, failure to adhere to statutory obligations and possible corruption in the department.
This week the department said it distanced itself from the allegations of financial mismanagement. It said the report was an ”unofficial document” and was a result of a ”standard preliminary process followed every year by the provincial treasury.
”The information in the report pertaining to our department has not been verified. The department has responded in full to any queries and questions officially raised by the provincial treasury.
”Our responses will be contained in the final report on the province’s financial status compiled by provincial treasury that will be tabled before the executive council later this year. It will provide a full and clear picture of the department’s expenditure for 2002/2003,” the department said.
The treasury report, which has not been released publicly, exposes the department, particularly, for irregularly awarding contracts worth millions of rands without following proper tender procedures.
In one instance, a contract worth more than R3-million was awarded to a contractor to renovate the provincial legislature without the tender process being followed. The contractor was allegedly paid before any work was done.
”The project was awarded to a contractor through a single quotation. The project cost is estimated at R3,7-million, which is far above the procurement through quotation,” the report reads.
The report shows that the funds for the project were not budgeted in the year the job was undertaken.
”The Department of Public Works was advised by the provincial legislature that the project is budgeted in the 2003/2004 financial year. The department was advised that the transaction is irregular and appropriate action must be taken to reverse the transaction,” the report states.