DA leader John Steenhuisen and KwaZulu-Natal Finance MEC Francois Rodgers have made serious allegations regarding financial mismanagement within government departments.
Story Summary:
- John Steenhuisen alleges R500 million is unaccounted for in the Department of Agriculture’s budget.
- KZN Finance MEC Francois Rodgers claims the provincial government spent R1 billion on hotels and travel.
- Audit reports show discrepancies in government spending, raising concerns about financial oversight.
John Steenhuisen claims R500 million is missing from agriculture
Steenhuisen, leader of the Democratic Alliance (DA), has raised concerns over a missing R500 million from the Department of Agriculture’s budget, a critical issue highlighted in the Auditor-General’s 2022-2023 report.
According to Steenhuisen, the funds were initially allocated to revamp a crucial facility responsible for producing animal vaccines.
However, a large portion of this budget has gone unaccounted for.
“I do intend to look at reintroducing a forensic audit to look into that and to get to the bottom of where that money went and how it was spent,” the minister said.
The Auditor-General’s report supports Steenhuisen’s claims, noting that R498 million of the department’s budget was untraceable.
The funds were tied to agricultural projects that were either poorly documented or never executed, raising suspicions of fraudulent contracts.
This issue raises red flags about the department’s financial management, with the report suggesting possible corruption or gross negligence.
The Auditor-General has called for a thorough audit and stronger financial controls to prevent future occurrences.
KZN finance MEC claims dept spent R1 billion on hotels and travel
KwaZulu-Natal Finance MEC Francois Rodgers has also made alarming claims about the provincial government’s spending, stating that R1 billion was spent on hotels and travel in the last financial year.
However, a closer look at the Auditor-General’s report reveals discrepancies in the actual figures.
The report shows that the provincial government spent R291.7 million on subsistence and travel during the 2022-2023 financial year, a decrease from the R368.3 million spent in 2021-2022.
While this reduction suggests some improvement in spending controls, the Auditor-General criticised the expenditure as still being disproportionately high, especially in light of the province’s financial constraints.
The report also highlighted inefficiencies in the procurement processes, with irregular expenditures and unnecessary spending on luxury accommodations.
Rodgers, who has committed to enforcing stricter financial governance, emphasised the need for austerity in public spending and has implemented measures to cut unnecessary costs.
“We must state that this government will implement a strict zero-tolerance approach to non-compliance to treasury regulations and prescripts. We want to ensure accountability,” Rodgers said.