Financial chaos continues to haunt Public Works

2013-10-02 17:23

Financial chaos continues to haunt the public works department and the entity responsible for managing its property portfolio.

According to the department’s 2012/13 annual report, tabled in Parliament, Auditor-General (AG) Terence Nombembe again struggled to find proof of much of the department’s expenditure, which runs into billions of rand.

The department itself received a qualified opinion, while the Property Management Trading Entity (PMTE) received its third consecutive disclaimer – one of the worst audit opinions possible.

The AG found the department did not always follow the law when it procured goods and services and in managing its contracts.

“Sufficient appropriate audit evidence could not be obtained that all contracts and quotations were awarded in accordance with the legislative requirements as the department did not implement proper record-keeping...” Nombembe said in the report.

Inaction against corrupt officials and co-conspirators was highlighted.

“Appropriate action was not in all instances taken against officials and role players ... where investigations proved fraud, corruption, improper conduct and failure to comply with the supply chain management system...” the AG said.

With regard to the PMTE, Nombembe could not make findings as leases and many other documents could not be found.

The AG found instances of a conflict of interest and the irregular acquisition of goods and services.

The DA said the department was dysfunctional and needed to be placed under administration.

“The dysfunction of the department of public works and its PMTE affects the service delivery of all government departments and organs of the state that rely on the department to manage their property needs,” DA MP Anchen Dreyer said.

She cited a recent case in Newcastle where police were evicted from their offices because the department had not paid the rent.

Dreyer would write to Finance Minister Pravin Gordhan to ask him to intervene.

“It is clear that [Public Works] Minister Thulas Nxesi has failed to rehabilitate the ailing PMTE. The time has therefore come for National Treasury to place the department of public works’ PMTE under administration.”

Join the conversation! 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. 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

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 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.