Honourable Speaker

The Department of Agriculture and Environmental Affairs has proved to be the single most complex and troublesome handful for SCOPA in the life of the current Parliament. The Chair of SCOPA gave the best summary of the situation in The Witness on 19 October 2006, where she was quoted as saying: “There are no proper financial controls; over-expenditure, irregular expenditure, inaccurate financial statements and many other discrepancies show that there is a direct contravention of the PFMA.”

This statement captures some of the problems which are widespread in the Department, as documented in the Auditor-General’s Report for the financial years 2004/2005 and 2005/2006, as well as in a host of related SCOPA resolutions. The Auditor-General’s Reports are based on tests and samples which were audited. Even so, the formidable result, given the shocking circumstances, gave Parliament almost nothing to apply its oversight role onto.

This is because the financial figures and other information were consistently incorrect. The documentation to verify the figures and expenditure could not be supplied. There was an overwhelming presence of irregular transactions and dubious procurement as well as of overwhelming mismanagement of finances and staff. As a result, the Auditor-General could not even form an audit opinion and was forced to bring out an audit disclaimer. This disclaimer is the second in as many years.

Even with two disclaimers, a well-known and documented over-expenditure on unfunded projects and against the grain of a number of SCOPA resolutions, the Department proceeded with this trend during the current financial year, as if nothing has happened. Over-expenditure on salaries and unfunded projects, irregular expenditure, irregular procurement, irregular agreements and contracts entered into without funding and without following the required procedures and irregular appointment of staff – all this has carried on unabatedly.

The interesting part is, of course, that this has been happening without Parliament knowing for more than two years. We all want to know how this was possible. It is now crystal clear that the Accounting Officer deliberately misled Members of Parliament. He even made statements under oath during SCOPA meetings which were false.

For example, under oath during SCOPA on 18 October 2006, he indicated that the decisions concerning the Mjindi and Ntingwe projects were taken before his appointment. This is an obvious falsehood. As both projects have been closely micro-managed and, at the same time, manipulated and abused by the Accounting Officer from their outset.

Another example: The HOD reported to SCOPA that the suspended senior management staff in his Department refuse to attend their disciplinary hearings, are constantly sick and use this as an excuse. This is not a true reflection of the situation. Only one of the suspended individuals was sick on only one occasion. This absence was supported by a medical certificate. This is hardly a trend the HOD has made it out to be before SCOPA.

The bottom line is that Parliament has been consistently misled over the past two and a half years. It is abundantly clear that the Public Finance Management Act and the Public Service Act have been seriously breached on many occasions by the Accounting Officer and his Department. Many of the transgressions and irregularities have been documented in the Auditor General’s reports but these may well be just a hint of what has been perpetrated.

We, as Parliamentarians, have the responsibility of oversight. This means that we have the responsibility to see to it that the citizens of KwaZulu-Natal receive the best value for their tax rands within the prescripts of the applicable legislation and regulations. We are bound by these laws and we must act wherever they are blatantly transgressed. The laws and regulations transgressed in the Department of Agriculture. Let us act.

I thank you.

Contact:
Sipho Mbatha
082 971 5849