AG Report: Free State is the worst performing province
22 November 2018
The Auditor-General’s presentation in Parliament this morning confirms that the Free State is in a complete financial crisis. No auditee in the province received a clean audit. Over a four-year period, the province’s audit outcomes have significantly regressed. The regression continued from the previous year to the current year. The lack of improvement in accountability for government spending led to the significant regression in audit outcomes.
Out of the audited entities in Free State:
8 got unqualified with findings
5 qualified with findings
3 disclaimed with findings
1 adverse with findings
The premier’s office and Sport, Arts, Culture and Recreation regressed from qualified audit opinions to disclaimed opinions. Agriculture and Rural Development moved from an adverse opinion to a disclaimed opinion. The deteriorating audit outcomes could be attributed to the leadership’s continued disregard for internal controls and the monitoring thereof.
Irregular expenditure amounts to R3 860 billion, unauthorised expenditure is R513 million and the fruitless and wasteful expenditure is at R16 million.
The following Free State’s Departments are in the top 10 of contributors in unauthorised expenditure:
Police, Roads and Transport by R241 million with R169 million being money that was not spent in accordance with the purpose of the budget and the remainder related to overspending on programmes. Health with R141 million due to overspending accrued across various programmes Education with R130 million this is due to overspending related to compensation of employees due to the insufficient budget allocation and budget cuts to fund other programmes.
The AG’s report says the provincial health department as in a vulnerable position and he singled out singled out “lack of accountability and commitment towards clean administration” as factors that influenced the poor showing of these provinces. Free State’s audit outcomes continue to worsen with disclaimed and adverse opinions. Delays in the completion of projects, poor quality work and payments without evidence of delivery results in poor service delivery and allegations of fraud. The oversight structures are not proactive, which hinders the effecting of consequences as members of the executive council are not held to account”.
A culture of no consequences has been created through the leadership’s involvement in the decision-making that led to transgressions. Where the DA governs financial management is prioritised. The DA in the Western Cape has achieved great results which shows that where the DA governs, money meant for the people, is spent on those who need it the most. Regular monitoring and evaluation of the province’s plans and the uncompromising approach to corruption and wasteful spending of taxpayers’ monies by the DA-led provincial administration. This is the kind of governance that the Free State people deserve, a DA-led government.
Issued by Patricia Kopane, DA Free State Premier Candidate, 22 November 2018
