Auditor-General slams Gauteng Health Department

14 February 2021

The Auditor-General has slammed the Gauteng Health Department for “slow responsibility” in fixing financial management controls, as well as a lack of accountability and consequence management for poor performance.

These critical comments are in a report presented last week to the Standing Committee on Accounts (SCOPA) in the Gauteng Legislature.

Findings in the report include the following:

- Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations.

- Goods and services of a transaction value above R500 000 were procured without inviting competitive bids.

- Some of the contracts were extended or modified without the approval of a properly delegated

- Some of the contracts were awarded to bidders who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state.

- Effective steps not taken to prevent irregular and fruitless and wasteful expenditure.

- Disciplinary steps were not taken against the officials who had permitted irregular expenditure.

With regard to spending related to Covid-19, the Auditor-General found a host of irregularities in buying Personal Protective Equipment (PPE), including:

- Specifications not indicated on awards and submissions.

- Goods received and accepted other than those ordered.

- Transactions noted with tax related discrepancies.

- Payment for goods higher than National Treasury Instructions.

- No evidence submitted to support deviations due to emergency procurement.

- Contracts awarded to service providers with no known history and capacity of supplying Personal Protective Equipment (PPE).

It is very significant with regard to the NASREC quarantine and field hospital that the Auditor-General finds that “the department did not invite as many suppliers as possible and there was no prior approval from the relevant treasury for the emergency procurement of the NASREC Field Hospital as required by treasury regulation.”

The NASREC facility has cost more than R200 million for largely empty beds even at the peaks of the Covid-19 epidemic.

Every year the Auditor-General makes the same depressing findings about poor controls and lack of accountability. Strong political will is needed to ensure that his recommendations are carried out, otherwise wastage and corruption will continue at the expense of health care.

Issue by Jack Bloom, DA Gauteng Shadow MEC for Health, 14 February 2021