KZN SCOPA Hearings Debate: Public funds are a trust – not a treasure chest

Issued by Marlaine Nair, MPL – DA KZN Alternate Spokesperson on SCOPA
28 Nov 2024 in Press Statements

The purpose of today’s debate is to discuss the critical findings and resolutions presented in the Standing Committee on Public Accounts (SCOPA) report. This report sheds light on both commendable progress and areas of concern within KwaZulu-Natal’s (KZN) government departments and entities, based on the 2023/2024 audit outcomes by the Auditor-General (AG).

It is imperative that KZN’s Government of Provincial Unity (GPU) confront the pressing challenges exposed by SCOPA and the AG’s findings. They are not merely administrative observations – they reveal critical failures in governance that directly affect the lives of our citizens. The results are both a call to action and a sobering reflection on governments shared responsibilities to KZN’s people.

Managing the public purse is like tending a community garden. It requires a collective effort, careful stewardship and proper long-term planning to ensure it benefits everyone.

A recurring theme across KZN government departments is the absence of accountability and robust leadership. The lack of timely investigations into irregularities, poor record-keeping, and inadequate consequence management foster an environment where inefficiency and misconduct thrive. Managing public funds without consequences for misuse is like locking the door but leaving the window open.

It is concerning that R4.93 billion in accumulated irregular expenditure from prior years has not been addressed through recovery, condonement or write-off processes. This is due to departments not submitting supporting documentation or providing evidence of remedial action, corrective measures or disciplinary action against responsible officials.

This is unacceptable. No matter where you work, if you are working with money, you must account. Even cashiers that work on tills have to balance at the end of a shift. If they are over, they are in trouble. If they are under, they are also in trouble and must pay in the difference. I am told that if a cashier is continually over or under, it is grounds for dismissal. However, in KZN there are government officials responsible for spending billions of Rands, with no documentation to show for it and no action taken against them.

This reluctance to deal with misconduct encourages repeat offences and is worrisome. If you let the thief, go, you are inviting them back for more.

As KZN SCOPA Chairperson, Tim Brauteseth so rightly emphasized: “Consequence management must not be a theoretical exercise. Accountability must become a reality for every official entrusted with public funds.” The AG also noted that: “A failure to align planned targets with budgets undermines service delivery and erodes public trust.”

The Chairperson’s report also touches on the achievement of targets vs actual budget spent. It appears that it is becoming more costly to achieve less. It is the responsibility of SCOPA to shine the spotlight on this and continue to hold these departments to account;

• KZN’s Department of Education (DoE) spent 100% of budget and achieved only 83% of its target. *KZN’s Department of Transport (DoT) spent 100% of its budget but only achieved 37% of its target.

• The Department of Health (DoH) spent 103% of its budget but only achieved 54% of its target. Ineffective monitoring and oversight of the Nkonjeni hospital upgrade resulted in a 21-month delay, impacting heavily on the lives of citizens who have to walk long distances to access healthcare – women who need to see a gynaecologist, pregnant women and even mothers with babies who need neonatal care.

• KZN’s Department of Human Settlements spent 93% of its budget yet only achieved 12% of its target. Inefficient project management procedures led to the delay of the Umbulwane housing project. According to the AGs report, this community had been waiting for 19 years without housing with some people still living in mud housing. Due to a lack of security, three houses that had been built were completely vandalized.

Residents are not interested in reasons for lack of service delivery, incomplete projects or delays, however well-articulated they may be. Instead, they view them as excuses, empty promises and government failure.

Public service is a privilege, not an entitlement and public funds are a trust, not a treasure chest.

KZN’s funds belong to the people of our province and the budget must not only reflect fiscal discipline but a commitment to delivering tangible results for every citizen. The lives of all our people must visibly improve.

It is encouraging that KZN’s Government of Provincial Unity (GPU) has already begun taking positive steps toward dealing with corruption and maladministration. Its commitment must be to transformative action, ensuring substantial progress and fewer repeat findings.

The road ahead demands courage, integrity, and accountability. As stewards of public resources, the GPU must rise to this challenge and honour its commitment to KZN’s people by keeping to the SCOPA resolutions and turnaround strategies in place. Those departments that have achieved clean audits underline the possibilities of accountability and adherence to financial management principles – it can be done.