The national government has failed on a grand scale to properly manage public money, Democratic Alliance public accounts spokesperson Eddie Trent said on Thursday.
An overview of the audit outcomes of government departments over the past four financial years proves that too many ministers and directors general (DGs) are unable to provide proper financial management of public money, he told a media briefing at Parliament.
”Indeed, in many cases, the overview paints a picture of financial disarray and mismanagement on a grand scale. The consequence of this is serious indeed.”
If the government could not properly spend taxpayers money, not only did service delivery become undermined, stalled or simply not happen, but public confidence in the government was undermined and the institution itself lost credibility in the eyes of ordinary people.
Trent said out of the 135 annual audits conducted by the Auditor General (AG) on the 34 government departments and public entities, from 2001/2002 to 2004/2005, there were only seven ”clean reports”.
In contrast, 35 were ”qualified”, received an ”adverse opinion”, or a ”disclaimer”.
A total of 128 reports had an ”emphasis of matter”.
”Entities that receive qualified reports, adverse opinions or a disclaimer from the AG are deemed to be in a state of financial disarray and mismanagement,” Trent said.
Entities receiving a report with an emphasis of matter were deemed to have failed to comply with their agreed programme of action or to have complied with statutory requirements.
”Quite clearly, the national government has failed on a grand scale to properly manage public money. Even if one excludes emphasis of matter reports, almost 30% of the Budget is being mismanaged.
”Just as alarming, is the fact that there has not been a single consequence for any of the worst departments, in this regard.
”Indeed if the past four years are an illustration of government’s commitment, then financial mismanagement and administrative incompetence seems now to be accepted as common practice and consequences do not follow,” he said.
In receiving any one of these three opinions from the AG, a department or entity would also have had to have ignored the recommendations and resolutions of the Standing Committee on Public Accounts (Scopa), a further indictment of its financial management.
”It is a gross abuse of public confidence to keep people in office who quite clearly cannot manage an administration or the financial requirements of a public body.”
Trent said it was time for the government and President Thabo Mbeki to put public interest first. Mbeki appointed ministers and DGs, and should now take action on their failings.
”The DA believes that the minister and DG in charge of any department that receives three disclaimed, qualified or adverse opinion reports in a row should be removed from their positions,” Trent said. – Sapa