Opposition parties in the Limpopo legislature have raised grave concerns following allegations of irregular expenditure by provincial departments and parastatals.
The DA, Freedom Front+ and the EFF are urging Premier Phophi Ramathuba to rein in irregular expenditure. They want her to address the province’s underperforming entities as a matter of urgency.
Gross financial mismanagement
The DA said it has noted with grave concern that the Office of Premier Phophi Ramathuba is not doing enough to hold members of the executive committee and accounting officers accountable for gross financial mismanagement.
Sunday World understands that irregular expenditure in the province has increased from R15.8-billion to R18.6-billion. This is between July 31 2023 and this financial year 2023.
Roads Agency Limpopo’s (RAL) irregular expenditure is said to have increased from R6.7-billion to R8.2-billion. The DA says RAL has failed dismally while the entity continues to misuse grant funding.
This, according to Jacques Smalle, the party’s spokesperson on treasury, is because of weak internal controls.
The Department of Education’s irregular expenditure increased from R3.4-billion to R4.1-billion. While the Department of Public Works, Roads and Infrastructure increased to R2.9-billion.
Health department expenditure
Ramathuba, while still the MEC, allowed the health department to rack up R2.2-billion in irregular expenditure.
Smalle said: “The provincial departments have seemingly struggled to get their irregular expenditure condoned. This because a large majority of the applications for condonement submitted failed to comply with the requirements. The requirements of the Public Finance Management Act compliance and reporting framework.”
Smalle said some of the province’s historical issues in addressing the irregular expenditure are delays in investigations. These are investigations on unwanted expenditure, lack of consequence management and non-compliance with legislation. It is clear there has been a lack of political will to address these challenges, he said.
The EFF said it noted with disbelief the revelations. It expressed shock that the provincial government’s irregular expenditure as of March 2024 has skyrocketed.
Threat to province’s financial stability
The red berets lamented a scenario where this irregular expenditure is not curbed by holding officials accountable. It said the province will forever be in serious financial distress if no action is taken.
EFF provincial leader, Lawrence Mapoulo said: “Officials in government continue to violate policies and prescripts. They are taking advantage of lack of consequence management.”
The FF + said the endless fruitless and wasteful expenditure will eventually weaken the provincial economy.
Its provincial leader, Marcelle Maritz, said the premier and her administration should lead by example. They must make sure that public funds are closely guarded.
She said: “The amounts mentioned in the continual wasteful and irregular expenditures are very high. It is imperative that these widespread allegations … be investigated with immediate effect.
“Moreover, it would be best to get forensic experts to conduct the investigations. The FF+ will be keeping a hawk eye on them and make sure that the law takes it course.”
Premier already taking steps to intervene
Ndavhe Ramakuela, spokesperson for the provincial government, commented on the matter. He said Ramathuba and her administration have already initiated a comprehensive review of financial management practices. This across all provincial departments.
Ramakuela said the premier acknowledges the concerns raised by opposition parties. This regarding irregular expenditure within the province.
He said: “The provincial government takes these matters seriously. And it is committed to ensuring transparency, accountability, and the efficient use of public resources. This includes strengthening internal controls. Also enhancing oversight mechanisms, and ensuring strict adherence to the PFMA.
The Executive Council has recognised the challenges faced by entities such as RAL. Also the departments of education, public works, roads and infrastructure, and health.
Whilst appreciating the turnaround in most of their audit results, measures are being implemented to address issues. These include the appointment of skilled financial managers. And the establishment of dedicated task teams to oversee corrective actions.”
