DA Limpopo concerned over alleged lack of financial management at RAL

SEKHUKHUNE – The Democratic Alliance (DA) in Limpopo expressed concerns about alleged lack of sound financial management in the Road Agency Limpopo (RAL) which allegedly left the public entity virtually bankrupt.

According to the opposition party the Auditor General’s (AG) briefing notes for the Standing Committee on Public Accounts (SCOPA) painted a bleak picture of the public entity’s finances and management and its current inability to fund monthly operational expenditure and continue rendering services.

Katlego Phala, DA Limpopo Spokesperson on Public Works, Roads and Infrastructure, said although the deficit for the current year decreased from R924 million to R832 million compared to the prior year, RAL’s total commitments was R2.256 billion.

Phala said in effect, RAL had committed its 2019/20 budgets plus an additional unbudgeted R180 million.

“The AG flagged irregular expenditure in that effective and appropriate steps were not taken to prevent irregular expenditure amounting to R944 706 000. Expenditure was incurred without an approved budget and also in excess of the approved budget, in contravention of section 53(4) of the PFMA. Irregular expenditure identified in the previous year was not investigated to determine if the person liable for the expenditure, R1 913 090 000. Despite the ongoing irregular expenditure within the public entity, it seems that management was severely lacking,” said Phala.

Phala said that in the current financial year, only one case was ongoing into allegations relating to financial misconduct, fraud and or improper supply chain management.

“The lack of contract management resulted in the amendment of two contracts without approval by a delegated official. The total value of the extensions was R1 697 990 51. Furthermore, nine contracts or providers were not monitored monthly. The total value of the related contracts was R56 235 221 44,” said Phala.

She said the DA called on Limpopo MEC for Public Works, Roads and Infrastructure, Monnica Mochadi to create an environment of zero tolerance to non-compliance within RAL by ensuring the implementation of the recommendations of the AG’s 2018/19 PFMA audit outcomes.

“This will result in adequate adherence to supply chain management processes and regulation spending in accordance with approved budget achievement on audit of pre-determined objectives should be supported with verified evidence, regular financial viability assessment should be done in key management positions and implementation of consequence management,” said Phala.

She concluded it was time that RAL’s accounting officer exercises the duty of utmost care to ensure protection of the assets and records of the public entity instead of unabatedly and carelessly committing public funds that were not utilized in the public interest.   

Thapelo Motseo

COMPANY BACKGROUND Sekhukhune Times was founded in 2015 for the purpose of providing Sekhukhune community and businesses with quality news. The business is operated within the Sekhukhune district municipality which consist of four municipality namely Fetakgomo Tubatse Local Municipality, Ephraim Mogale Local Municipality, Makhuduthamaga Local Municipality and Elias Motsoaledi Local Municipality . Sekhukhune Times help the readers to become aware of their surroundings from social life, to the news happening in the community and also not forgetting what’s happening on the outside world’ it brings you all the news in a convenient and simple language that community can understand and It is released every Thursday and distributed through various mine, shops, , pubiic institutions and in schools. Complimentary copies are distributed to advertisers. The publication is also available online www.sekhukhunetimes.co.za Sekhukhune Times bring you all the news you need to know about the community, events coming up, speeches and also some tips on surviving student life as well as anything which you feel could be beneficial to students voicing out their opinions. MISSION . To became a cross border publication that will link young people from all corners of the world. . To became a source of information to the youth and community in general. .To became a tool for businesses big and small to market their products. .To serve as a communication tool for businesses, government, school and communities in general. .To offer jobs to young people and thus participate in eradicating unemployment, which is a major contributor to increase in crime, AIDS and poverty in our communities. .Provide auxiliary services such as printing, layout and design and photography for other institutions. . Sekhukhune Times is committed to providing the client with a quality product at competitive price within schedule. . At all time we will address and service the customers, requirements, comply with specifications, standards and technical requirements, act ethically and with dignity

Social Media Auto Publish Powered By : XYZScripts.com