Consideration and adoption of Unauthorised Expenditure Reports

Meeting report

The Chairperson, Mr M Hlengwa (IFP), welcomed all the Committee Members to the meeting. He outlined the agenda of the meeting.

The Chairperson took the Committee Members through the unauthorised expenditure reports, as briefed by National Treasury. He indicated that the Department of Water and Sanitation report still had outstanding information and it therefore would not be complete. He highlighted that the process is a continuation of the previous meetings approval of reports.

Unauthorised Expenditure Reports

Sixth Report of the Standing Committee on Public Accounts on the Unauthorised Expenditure of Statistics South Africa (Stats SA)

The Committee noted that due to significant budget reductions and the compensation of employees, there was unauthorised expenditure of R37 million in the 2017/18 financial year; R56 m in 2018/19; and R47 million in the 2019/20 financial year.

The Committee recommended that R11.378 million should be charged for the 2017/18 financial year, against all funds allocated from the Department for future years, in terms of Section 34 (2).

The Chairperson highlighted that R26 million must be financed as a direct charge from the National Revenue Fund.

The Committee also recommended that in terms of the 2018/19 financial year, R7.8 million must be charged and R48.9 million as a direct charge. For the 2019/20 financial year, there should be a direct charge against the National Revenue Fund.

The Committee Members agreed with the recommendations made and moved for the adoption of the recommendations. See report here https://pmg.org.za/tabled-committee-report/5684/

Seventh Report of the Standing Committee on Public Accounts on the Unauthorised Expenditure of the Department of Public Service and Administration

The Committee noted unauthorised expenditure of R8.812 million incurred during the 2013/14 financial year, which emanated from overspending in the Administration programme, under the Ministry subprogramme. The overspending arose from expenditure related to additional members appointed to the former Ministers’ advisory body, and increased personnel in the Minister’s office, outside what the Government Gazette and the budget in the office of the Minister provided for.

The Committee recommended that an amount of R8.812 million should be financed as a reduction of the DPSA’s future allocation in terms of section 34(1)(b) of the Public Finance Management Act, 1999.

The Committee agreed to adopt the report. See report here https://pmg.org.za/tabled-committee-report/5685/

Eighth Report of the Standing Committee on Public Accounts on the Unauthorised Expenditure of the Independent Police Investigative Directorate (IPID)

The Committee noted that unauthorised expenditure incurred in 2005/06, the Department overspent its Programme three budget allocation by R891 thousand that was incurred under goods and services as a result of the printing of hard copies of the ICD Strategic Plan for the period 2006-2009, as well as its Annual Report for the 2004/05 financial year.

In 2008/09, the Department incurred higher than planned at Vote level by R800 000 as a result of an unanticipated interface on the PERSAL system which occurred on 30 March 2009, a day before the end of the financial year.

The Committee recommended that the R891 000 should be financed as a reduction of the Department's future location in terms of Section 34 (2) of the PFMA.

The Committee Members agreed to move for the adoption of the report. See report https://pmg.org.za/tabled-committee-report/5686/

Ninth Report of the Standing Committee on Public Accounts on the Unauthorised Expenditure of the Department of Basic Education (DBE)

SCOPA noted that the DBE incurred unauthorised expenditure of R6.488 million in 2014/15. The unauthorised expenditure was incurred from the national teacher awards ceremony, where the Department annually celebrates and acknowledges public schools and teachers for their outstanding performance.

The Chairperson highlighted that the Committee recommended that the amount of R6.488 million must be financed as a reduction of the Department’s future allocation in terms of section 34(1)(b) of the PFMA, 1999.

The Committee moved to adopt the report. See report https://pmg.org.za/tabled-committee-report/5687/

Tenth Report of the Standing Committee on Public Accounts on the Unauthorised Expenditure of the Mineral and Energy

The Committee notes that the Department incurred unauthorised expenditure in the 2010/11 financial year by overspending the vote by R14.86 million. The Department was unable to make the final transfer of the Integrated National Electrification Programme to Mthonjaneni Local Municipality in 2009/10.

The Committee recommends that an amount of R14.86 million should be financed as a reduction of the Department’s future allocation in terms of section 34(1)(b) of the PFMA, 1999.

The Committee moved to adopt the report. See here https://pmg.org.za/tabled-committee-report/5688/

The Chairperson stated that the reports of the Department of Water and Sanitation; the Department of Transport; and the Road Traffic Management Corporation, would be carried over to the seventh Parliament due to an inability to submit information timeously.

The Chairperson indicated that the reports need to be dealt with as a matter of urgency, as some of the reports are quite old and they need to be treated as priority and they should not roll over before going into the House.

Meeting adjourned.