Audit outcomes a SupraStar failure

The 2015/16 Auditor General outcomes for the North West Province vindicates the DA’s position that Premier Supra Mahumapelo and his ANC administration are deteriorating and failing the people of the North West, as seven entities received a disclaimer of audit opinion.

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The North West Provincial Government’s irregular expenditure has increased from R2 billion to R2,9 billion in the 2015/16 financial year. There is a total balance of R13.2 billion in unresolved irregular expenditure for the Province. This is R13.2 billion in public money that Premier Supra Mahumapelo’s government has misspent. We consider this to be a SupraStar failure.

The current performance and outcomes can be attributed to a lack of effective monitoring by the provincial leadership as well as the respective departments. We will therefore insist that the North West Standing Committee on Public Accounts investigates each and every breach of the financial rules and laws, and holds those accountable to book. The Provincial Government has failed to implement simple key controls such as record management, regular financial and performance reporting. Furthermore, vacancies in key leadership positions continue to badly impact the ability of proper leadership in the province. Non-adherence to supply chain management laws has resulted in 98% of the irregular expenditure incurred. This means that goods and services are in a way which allows corruption to flourish. The ANC government in the North West has failed to lead by example and to hold officials accountable for poor performances as well as implementing consequences for financial misconduct.

In the past three years, auditees have experienced increased pressure on their financial viability. Most public entities were unable to pay their creditors within 90 days and at the end of the year their debt would exceed the cash they had available. The North West Tribal and Trust Fund financials have been outstanding since 2001; this has resulted in a disclaimer of opinion as financial books and accounts of the 92 individual tribal authorities have also not been submitted for auditing since 1994 as required by the North West Traditional Leadership and Governance Act.

Whilst the province has managed to submit financial statements, the quality and availability of the underlying financial records remain a problem. Auditees are unable to submit credible financial statements and rely on the audit process to produce credible financial statements.

Premier Mahumapelo’s Administration has failed to effectively monitor departments and implement a turnaround strategy to address the financial misconduct and misstatements within the Province. It is clear that Mahumapelo simply does not care enough about public money to protect and guard it. In contrast to the financial negligence in the North West, where the DA governs the AG reported that not one Western Cape department received an adverse audit outcome. Irregular expenditure has decreased to just R28 million in the Western Cape, compared to R2,9 billion in the North West. It is clear that the DA puts South Africa first, unlike the ANC who continues to put itself first.