The Standing Committee on Appropriations of the U.S. Congress has voiced concern over reports that the payment of service providers by national departments is the primary source of ineffective and wasteful spending.
Friday, the Office of the Auditor General informed this to the committee during a meeting.
The AG informed the committee that, during the previous five years, a number of departments have routinely incurred useless and unnecessary expenditures.
“Of the 41 national departments, 21 spent R1.52 billion in pointless and inefficient spending over this period,” the report stated.
During the meeting, the Auditor-General emphasized that the largest donors to this enormous number are the Departments of Defense (R460.09 million), the National Treasury (R339.47 million), Basic Education (R106.85 million), and Tourism (R92.59 million).
The majority of inefficient spending happened in the areas of procurement, payment, and resource management. According to the Auditor General, 29% of national departments are in good financial condition, 62% are cause for concern, and 9% require immediate assistance.
Concerned by the committee, National Treasury is among the worst violators. Sfiso Buthelezi, chairman of the committee, stated that underspending deprives people of vital services, with women and children suffering the most.
The committee was also worried about the lack of consequence management in some departments, citing the fact that persons are suspended with full pay as a lack of deterrent. It was recommended by the committee that departments train their employees with project and contract management skills, as these are essential for service delivery implementation. – SAnews.gov.za