Background

The Committee notes the unauthorized expenditure totaling R1 591 000.00 incurred during the 2003/04 financial year and reports as follows:

2003/04 Financial year

1. R1 591 000.00 over-expenditure in the recurrent budget of the Department.

In oral evidence provided by the National Treasury on the above-mentioned instances of unauthorized expenditure, the National Treasury confirmed that:

• Services for the expenditure were received to the satisfaction of the department;
• No individual benefited from such expenditure and;
• Control measures are in place to prevent this from reoccurring.

In light of the above, the Committee recommends that Parliament approve the amount of R1 591 000.00 incurred during the 2003/04 financial year.

The Committee reviewed the written evidence submitted by the Department and is satisfied that it is implementing measures to prevent a reoccurrence. The Committee will monitor the Department’s progress in this regard.

In addition, the Committee wishes to point out that Parliament has ensured that the Public Finance Management Act (PFMA) contains provisions aimed at strict budgetary discipline. All future instances of unauthorized expenditure will therefore be thoroughly scrutinized in terms of sections 34, 38 and 81 of the PFMA.

Report to be considered.

The Committee notes the unauthorized expenditure totaling R491 210.99 incurred during the 1998/99 financial year and unauthorized expenditure totaling R2 569 000.00 incurred during the 2002/03 financial year, and reports as follows:

1998/99 Financial year

a) R139 118.86 was incurred as a result of non-compliance with procurement procedures and regulations.

1. R270 480.03 was incurred as a result of non-compliance with treasury regulations.
2. R81 612.10 was incurred as a result of non-compliance with procurement procedures.

2002/03 Financial year

3. R2 569 000.00 was incurred as a result of overspending on the vote.

In oral evidence provided by the National Treasury on the above-mentioned instances of unauthorized expenditure, the National Treasury confirmed that:

• Services for the expenditure were received to the satisfaction of the department;
• No individual benefited from such expenditure and;
• Control measures are in place to prevent this from reoccurring.

In light of the above, the Committee recommends that Parliament approve the amount of R491 210.99 relating to the 1998/99 financial year and the amount of R2 569 000.00 relating to the 2002/03 financial year.

Notwithstanding the above recommendation, the Committee views lack of adherence to State Tender Board directives with concern. The Committee will monitor the department’s progress in this regard.

In addition, the Committee wishes to point out that Parliament has ensured that the Public Finance Management Act (PFMA) contains provisions aimed at strict budgetary discipline. All future instances of unauthorized expenditure will therefore be thoroughly scrutinized in terms of sections 34, 38 and 81 of the PFMA.

Report to be considered.

The Committee notes the unauthorized expenditure totaling R4 682 751.20 incurred during the 2000/01 financial year and reports as follows:

2000/01 Financial year

1. R388 842.60 was incurred as a result of non-compliance with State Tender Board directives in procuring the services of Chubb Protection Services (Pty) Ltd
2. R4 293 908.60 incurred for the transportation of deportees by air without prior approval from the State Tender Board.

In oral evidence provided by the National Treasury on the above-mentioned instances of unauthorized expenditure, the National Treasury confirmed that:

• Services for the expenditure were received to the satisfaction of the department;
• No individual benefited from such expenditure and;
• Control measures are in place to prevent this from reoccurring.

In light of the above, the Committee recommends that Parliament approve the amount of R4 682 751.20 incurred during the 2000/01 financial year.

Notwithstanding the above recommendation, the Committee views lack of adherence to State Tender Board directives with concern. The Committee will monitor the department’s progress in this regard.

In addition, the Committee wishes to point out that Parliament has ensured that the Public Finance Management Act (PFMA) contains provisions aimed at strict budgetary discipline. All future instances of unauthorized expenditure will therefore be thoroughly scrutinized in terms of sections 34, 38 and 81 of the PFMA.

Report to be considered.

==

Sixty-First Report of Standing Committee on Public Accounts: Unauthorized Expenditure (South African Management Development Institute), dated 14 September 2005:

UNAUTHORIZED EXPENDITURE FROM PREVIOUS YEARS

The Committee notes the unauthorized expenditure totaling R4 370 000.00 incurred during the 2002/03 financial year and reports as follows:

2002/03 Financial year

1. R4 370 000.00 was incurred when the Department overspent on certain programs. The main reason was that donor funding for the programs ended and the Department had to continue funding them.

In oral evidence provided by the National Treasury on the above-mentioned instances of unauthorized expenditure, the National Treasury confirmed that:

• Services for the expenditure were received to the satisfaction of the Department;
• No individual benefited from such expenditure and;
• Control measures are in place to prevent this from reoccurring.

In light of the above, the Committee recommends that Parliament approve the amount of R4 370 000.00 incurred during the 2002/03 financial year.

Notwithstanding the above recommendation, the Committee views lack of adherence to State Tender Board directives with concern. The Committee will monitor the Department’s progress in this regard.

In addition, the Committee wishes to point out that Parliament has ensured that the Public Finance Management Act (PFMA) contains provisions aimed at strict budgetary discipline. All future instances of unauthorized expenditure will therefore be thoroughly scrutinized in terms of sections 34, 38 and 81 of the PFMA.

Report to be considered.

==

1. Introducion

The Standing Committee on Public Accounts, having heard and considered evidence on the Annual Report and the Report of the Auditor-General on the financial statements of the South African Diamond Board (Board) for the year ended 31 March 2003/ 2004 tabled in Parliament and reffered to it, reports as follows:

2. Investigation relating to the export and sale of diamonds in terms of the Diamonds Act, 1986 (page 29-31 of the annual report)

The Committee noted with concern the significant weaknesses highlighted in the audit report with regards to the export and sale of diamonds. The following issues were raised:

1. validity of exemptions given under section 63 of the Act to diamond producers and dealers by virtue of agreements entered into in terms of section 59 of the Act;
2. limited documentation for Section 59 agreements;
3. the drastic decline in export duties;
4. differences and disputes between the Government Diamond Valuator (GDV) and the SA Diamond Board relating to the role and functions of the GD; and
5. The length of time the above issue remain unresolved.

Having heard and considered the views of National Treasury, SA Diamond Board, the Department of Minerals and Energy and the Auditor-General, the Committee is of the view that this matter has been unduly prolonged.

The Committee is aware of the many administrative initiatives to resolve these issues but notes the failure of these to produce positive result.

The Committee therefore recommends that:

1. the relevant state institutions initiate legal proceedings with a view towards resolving the section 59 exemption in question – a special meeting should be convened by the Auditor General for this purpose within 30 days after this report has been adopted by Parliament;
2. the Board ensures that all South African produced diamonds be valued in SA on a fair market basis;
3. the Board strengthens its efforts to increase local beneficiation of SA diamonds; and
4. the Board confers with the Department of Minerals and Energy to finalise and implement the new legislation.

The Committee expresses its disappointment at the inadequate representation from the Department of Minerals and Energy at the hearing and insists that future representation be at an Accounting Officer level.

1. Conclusion

The Committee requests the Board to furnish it with a progress report covering all the above-mentioned issues within 60 days after this report has been adopted by Parliament.

Report to be considered.

==

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Police, Private Security, Legal and Correctional Services Sector Education and Training Authority (POSLEC- SETA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

2. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions will be equally unqualified.

3. CONCLUSION

The Committee is of the view that no further interaction with the Accounting Authority of the POSLEC-SETA is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Primary Agriculture Education and Training Authority (PAETA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

The Committee noted the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions will be equally unqualified.

3. CONCLUSION

The Committee is of the view that no further interaction with the Accounting Authority of the PAETA is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Financial & Fiscal Commission (FFC) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

The Committee noted the unqualified audit opinion expressed by the independent auditor, and trusts that future audit opinions will be equally unqualified.

The Committee is of the view that no further interaction with the Accounting Authority of the Financial and Fiscal Commission is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the

Independent Auditors.

Report to be considered.

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual report and the Report of the Auditor-General on the Financial Statements of the Independent Communications Authority of South Africa (ICASA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

2. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions shall be equally unqualified.

However, the Committee submitted a number of questions to the Accounting Authority of the ICASA on matters, which according to the Committee, required clarification.

Having considered the written replies from the entity, the Committee is satisfied that the Accounting Authority is attending to the matters in question, except for the interest on late payment of VAT. The Committee will refer ICASA's response to the National Treasury for its view on the funding problems of VAT liability.

The Committee recommends that it be updated with the progress report and expects the Accounting Authority to expeditiously rectify the issues in question.

3. CONCLUSION

The Committee is of the view that, except for the aspects highlighted above no further interaction with the accounting authority of the ICASA is necessary at this stage.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of The Council for Scientific and Industrial Research (CSIR) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

Auditor-General, and trusts that future audit opinions shall be equally unqualified.

The Committee is of the view that no further interaction with the accounting authority of the CSIR is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditor on the Financial Statements of the South African Broadcasting Corporation Limited (SABC) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

The Committee noted the unqualified audit opinion expressed by the

independent auditor, and trusts that future audit opinions will be equally unqualified.

The Committee is of the view that no further interaction with the Accounting Authority of the SABC is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the independent auditors.

Report to be considered.

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Competition Tribunal (Tribunal) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

2. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions shall be equally unqualified.

3. GENERAL MATTERS

The Committee noted with concern that the Tribunal incurred wasteful expenditure. Although it has indicated that there are now systems in place regarding fruitless and wasteful expenditure. The Committee is of the view that this was due to negligence and that the Accounting Authority should have taken steps against the individuals concerned.

4. RECOMMENDATION

The Committee recommends that the Accounting Authority report to Parliament within two weeks after this report has been adopted by Parliament on steps taken with regard to section 38 (1)(g) and (h) of the PFMA.

5. CONCLUSION

The Committee is of the view that except for the aspects highlighted above no further interaction with the Tribunal would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the South African Veterinary Council for the year ended 31 March 2004, tabled in Parliament and referred to it,

reports as follows:

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions will be equally unqualified.

The Committee is of the view that no further interaction with the Accounting Authority of the South African Veterinary Council is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Local Government Water And Related Services Seta (LGWSETA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

2. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

3. GENERAL MATTERS

The Committee noted that LGWSETA have not submitted written reasons as to why it should not be amalgamated with another SETA.

The Committee expects this issue to be addressed as a matter of urgency and will monitor this concern in the next Annual Report.

4. CONCLUSION

The Committee is of the view that except for the aspect highlighted above; no further interaction with the LGWSETA would be necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

==

The Standing Committee on Public Accounts, having considered the Annual

Report and the Report of the Auditor-General on the Financial Statements of

the Financial Services Board (FSB) for the year ended 31 March 2004, tabled

in Parliament and referred to it, reports as follows:

2. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions will be equally

unqualified.

The Committee is of the view that no further interaction with the Accounting

Authority of the Financial Services Board (FSB) is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the

Auditor-General.

Report to be considered.

==

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Clothing, Textile, Footwear and Leather Seta (CTFL- SETA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

The Committee noted the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions will be equally unqualified.

The Committee is of the view that no further interaction with the Accounting Authority of the CTFL-SETA is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Airports Company South Africa Ltd (ACSA) for the year ended 31 March 2004, tabled in Parliament and referred to it, reports as follows:

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions will be equally unqualified.

The Committee is of the view that no further interaction with the ACSA is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.