Bhisho praises department for fraud cleanup and improved financial reports.
THE Eastern Cape department of health reported 47 cases of fraud against its officials to police in 2012-13.
It has also instituted 19 disciplinary cases against officials for irregular expenditure, Bhisho’s government financial watchdog, the Standing Committee on Public Accounts (Scopa) heard yesterday.
This was after the department realised it incurred R398-million in irregular expenditure for the financial year.
Health department superintendent-general Thobile Mbengashe, however, could not provide information about the progress of each case and promised to do so at a later stage.
He said a committee had been set up to deal with all disciplinary cases.
“The department has established a financial misconduct committee to monitor discipline against all officials responsible for irregular expenditure.
“Three officials from the finance internal control directorate are to be transferred to deal with investigations on irregular expenditure,” said Mbengashe.
He also acknowledged that the irregular expenditure was identified and said it related to contravention of supply chain management procedures.
“Seventy-six percent relates to the expired contract for chronic psychiatric services.
“An application for condonation was made to provincial treasury.
“This matter remains unresolved and are currently being investigated,” said Mbengashe.
The department was, however, commended by the committee for improving its audit opinion.
It went from a disclaimer in 2011-12 financial to a a qualified opinion in 2012-13 financial year.
The Auditor-General has lauded the department for its performance.
“Implementing specific long-term action plans, the political leadership responding to our messages and certain recommendations, as well as filling of critical vacant posts and competent staff, produced results.
“The most critical areas that have been addressed are the previous years’ qualifications on assets and accruals,” said the AG.
The audit report shows that the department incurred R52-million in unauthorised expenditure and R125-million in fruitless and wasteful expenditure.
However, the department did not escape the committee chair’s no-nonsense approach.
Chairman and UDM MPL Max Mhlati demanded that the department provide it with timeframes as to when disciplinary cases will be completed.
“Every year we are told of a committee.
“The previous head of department ) made the same promise,” Mhlati said.
ANC MPL Xola Pakati reminded Mbengashe that if he failed to act on these cases he, too, would be in violation of the Public Finance Management Act (PFMA).
During 2011-12 the department incurred R1.2-billion in irregular expenditure and more than R30-million in fruitless expenditure.
An SIU report seen by the Daily Dispatch early this year showed that 15 employees had the highest number of irregularities found in the investigation. In addition, 14144 transactions were processed where supply chain processes had been manipulated. “One company had 372 split payments totaling R8.9-million to avoid stricter procurement requirements,” the report revealed.
About 59 suppliers were paid R3.1-million without an invoice being produced. The SIU report also show that more than 80 service providers involved in fraudulent purchasing at East London Emergency Medical Services (EL EMS) were being investigated.
The report states 125 transactions to the value of R2.2-million were processed by EL EMS to the three companies.
‘Bill of health’ turns corner
THE Eastern Cape department of health reported 47 cases of fraud against its officials to police in 2012-13.
It has also instituted 19 disciplinary cases against officials for irregular expenditure, Bhisho’s government financial watchdog, the Standing Committee on Public Accounts (Scopa) heard yesterday.
This was after the department realised it incurred R398-million in irregular expenditure for the financial year.
Health department superintendent-general Thobile Mbengashe, however, could not provide information about the progress of each case and promised to do so at a later stage.
He said a committee had been set up to deal with all disciplinary cases.
“The department has established a financial misconduct committee to monitor discipline against all officials responsible for irregular expenditure.
“Three officials from the finance internal control directorate are to be transferred to deal with investigations on irregular expenditure,” said Mbengashe.
He also acknowledged that the irregular expenditure was identified and said it related to contravention of supply chain management procedures.
“Seventy-six percent relates to the expired contract for chronic psychiatric services.
“An application for condonation was made to provincial treasury.
“This matter remains unresolved and are currently being investigated,” said Mbengashe.
The department was, however, commended by the committee for improving its audit opinion.
It went from a disclaimer in 2011-12 financial to a a qualified opinion in 2012-13 financial year.
The Auditor-General has lauded the department for its performance.
“Implementing specific long-term action plans, the political leadership responding to our messages and certain recommendations, as well as filling of critical vacant posts and competent staff, produced results.
“The most critical areas that have been addressed are the previous years’ qualifications on assets and accruals,” said the AG.
The audit report shows that the department incurred R52-million in unauthorised expenditure and R125-million in fruitless and wasteful expenditure.
However, the department did not escape the committee chair’s no-nonsense approach.
Chairman and UDM MPL Max Mhlati demanded that the department provide it with timeframes as to when disciplinary cases will be completed.
“Every year we are told of a committee.
“The previous head of department ) made the same promise,” Mhlati said.
ANC MPL Xola Pakati reminded Mbengashe that if he failed to act on these cases he, too, would be in violation of the Public Finance Management Act (PFMA).
During 2011-12 the department incurred R1.2-billion in irregular expenditure and more than R30-million in fruitless expenditure.
An SIU report seen by the Daily Dispatch early this year showed that 15 employees had the highest number of irregularities found in the investigation. In addition, 14144 transactions were processed where supply chain processes had been manipulated. “One company had 372 split payments totaling R8.9-million to avoid stricter procurement requirements,” the report revealed.
About 59 suppliers were paid R3.1-million without an invoice being produced. The SIU report also show that more than 80 service providers involved in fraudulent purchasing at East London Emergency Medical Services (EL EMS) were being investigated.
The report states 125 transactions to the value of R2.2-million were processed by EL EMS to the three companies.
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