NYDA: AG’s report says we’re doing better

2013-10-02 14:34

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

The National Youth Development Agency (NYDA) has accused media and opposition parties of distorting the Auditor-General’s findings published in its 2012/13 annual report.

Auditor-General (AG) Terence Nombembe found the NYDA had racked up R62 million in irregular spending and failed to act against the officials at fault.

“The AG’s report points to areas of improvement in the NYDA finances and operations,” spokesperson Siyabonga Magadla said.

“Among these, the AG’s report has noted significant improvements in the reduction of irregular expenditure, which dropped from R133 million in the 2011/12 financial year to R62 million in the 2012/13 financial year.”

Magadla said while this was welcome, further steps were being taken to cut irregular spending even further.

The AG found the NYDA had flouted National Treasury regulations by procuring goods and services worth more than R500 000 without a proper tender process.

Magadla said this did not suggest money was wasted or misappropriated.

“In such instances, deviations were approved by the accounting authority wherein it was impractical to source three quotations (owing to time constraints or scarcity of the service required) as required by the Treasury regulations,” he said.

The agency had further financial losses to the tune of R31.5 million in defaulted loans.

In his opinion, Nombembe noted that the recovery of the money was “doubtful”.

“In terms of the possible defaulted loans ... the agency has put in place a recovery plan to recoup this money,” said Magadla.

“The NYDA is taking legal action on all defaulted loans. Slow-to-pay and no-pay customers are handed over to debt collectors.”

Magadla also justified the widely criticised salaries and bonuses paid to management and staff.

Performance bonuses totalling over R7.5 million were approved for 2012/13.

Top management and senior management were paid out close to R5 million, while general staff were paid R2.6 million.

“It is not uncommon for any organisation or institution to pay its staff performance bonuses, and this is usually done in line with signed performance agreements with staff at the start of the financial year,” said Magadla.

“They are therefore paid against agreed-upon performance targets and to do otherwise would be illegal on the part of any employer.”

The NYDA executive will appear before Parliament’s portfolio committee on appropriations later this month, and are likely to be grilled by MPs on the report.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.