AG audit slams correctional services
2013-03-06 15:45
Cape Town – A lack of management and a failure to follow
prescribed processes characterises many of the contracts awarded to consultants
by the department of correctional services, MPs heard on Wednesday.
The department had spent R2bn on consultants from 2008/9
to 2010/11, senior manager in the office of the auditor general, Gratitude
Ramphaka, told members of Parliament's correctional services portfolio
committee.
This amount was the total spent on out-source services,
consultants, and contractors, grouped together.
Briefing the committee on the findings of a performance
audit on the use of consultants by the department, Ramphaka said her office had
audited a "selected sample" of 27 projects, with a total value of
R214m.
Among these was a 2007 to 2009 contract awarded by the
department to the State Information Technology Agency (Sita).
A statutory body, Sita was established in 1999 to
consolidate and co-ordinate the state’s information technology resources.
Ramphaka said a first finding of the audit was that no
cost-benefit analysis was done on the appointment of consultants for this R58m
contract.
"The department was not able to provide us with
evidence that this was the most cost-effective route they could have taken.
"There was no strategic planning to reduce IT
dependence, so for the most part the department was comfortable to continue to
use the services of Sita."
The department had used some of these consultants for two
decades.
"Consultants were used for up to 20 years. We found
instances where consultants managed other consultants, so there was no
departmental representative on the project management.
"There were payments that were made before the SLA
(service level agreement) was signed; that means there was limited monitoring.
And payments to the Sita consultants were not monitored.
"The department ended up spending about R18m more
than was originally contracted. The payments were not monitored."
Incomplete projects
On another major IT contract, an R11.7m so-called
"virtualisation project" awarded to Stortech, the project had been
paid for but not completed.
"The project was not completed as at January [last
year], although the full contract amount was paid. This was mainly due to lack
of monitoring."
The department's "open view project", awarded
to Hewlett-Packard, was also not completed, though the full amount was paid. It
was five years late.
"There was [also] no competitive bidding process for
this particular contract. For a R21.1m contract they had only one quote instead
of going out on tenders.
"The consultant was actually the consultant that
performed the needs analysis for the project, which is not allowed,"
Ramphaka said.
Referring to smaller contracts among the 27 audited by
her office, she said numerous problems had been picked up.
These included a lack of monitoring and that
"invoices were certified without checking that services were rendered, the
progress and quality of work done was not checked, there were overpayments, and
projects were completed late".
Responding to a question on who in the department was
accountable for managing consultant contracts, Ramphaka said
"various" officials were involved.
"There are various people who actually authorised
the transactions, so I can't go into detail with that. There were some that
obviously went all the way to the accounting officer, but there were also
problems with the authorisation that was given by the accounting officer and
how it was actually implemented."
Committee chairperson Vincent Smith said the department
had not had a stable leadership. There had been several accounting officers
over the years.
"We really have to start sending the message that if
it happened in your time, even if you are not in government any more, we should
be able to pursue you," he said.
Wednesday's briefing comes ahead of hearings on the
matter next week by Parliament's standing committee on public accounts.
- SAPA
