Time to get rid of ineffective state entities – DA NWest

Party says AG’s main concern remains slow response to recommendations and lack of accountability

Time to get rid of ineffective North West state entities, Mr Premier

1 April 2021

Note to Editors: Find attached soundbite in English by DA North West Chief Whip, Freddy Sonakile. 

The Democratic Alliance (DA) in North West have noted the latest national and provincial audit outcomes for the 2019/20 financial year.

The Auditor-General’s main concern about the stagnant audit outcomes of North West Provincial Departments and state entities, remains the slow response to its recommendations and the lack of accountability that continues to enable irregular expenditure.

The DA is alarmed by the following:

Section 100(1)(b) national intervention impact: 

- The Department of Health, which has been under national administration since 2018, has been listed among the biggest contributors to irregular expenditure that has not been dealt with at a whopping R9.8 billion.

- The Department of Community Safety and Transport Management, also under national administration since 2018, was listed among the top 10 contributors to irregular expenditure nationally.

Entities with serious financial health concerns: 

- North West Parks Board with a budget deficit of R59 million;

- North West Development Corporation, Golden Leopard Resorts and GL Resorts have failed to disclose their financial deficit for more than 4 successive years;

- North West Transport Investments (NTI), North West Star and Atteridgeville Bus Services failed to submit financial statements on time.

The average provincial creditor payment period is standing at 38 days, which is outside the legislated 30 days. At such critical times where businesses have been badly affected by Covid-19, the DA believes paying service providers on time should be a key focus of government.

The regression of the new Department of Human Settlements to a disclaimer is a call for concern. This Department also returned a whopping R100 million to national treasury due to under expenditure.

All the above are signs of an ailing province with no revival plan. We will be requesting Premier Mokgoro to get rid of redundant entities such as NTI, NWDC and Golden Leopards which have been nothing but a financial burden to the province.

The DA will also be requesting the relevant Members of the Provincial Executive, through the implementing protocols it has with the National Government, to put the spotlight on consequence management of officials, particularly at the Departments of Health and Community Safety and Transport Management.

The DA-led Western Cape remains the forerunner of good governance with a 70% clean audit outcome, which demonstrates our commitment to accountability, consequence management measures and optimum administration of public funds.

Issued by Freddy Sonakile, DA North West Chief Whip, 1 April 2021