Throw book at officials who flout spending rules

On Wednesday, auditor-general Tsakani Maluleke tabled the Public Financial Management Act report in parliament.

It details the audit outcomes of national and provincial government and state-owned enterprises for the 2020/2021 financial year.

Though the audit results have improved since last year, the report is not pretty reading.

Less than a fifth of the R1.9-trillion spending by national and provincial government received a clean audit, with SOEs and the service delivery departments faring poorly.

Twelve entities — including the SA Nuclear Energy Corporation and the National Skills Fund — received a disclaimer, the worst possible audit outcome.

Fruitless and wasteful expenditure amounted to R1.72bn, and irregular spending, or spending over budget, stood at a whopping R3.21bn.  

Of this irregular expenditure, the amount splashed out by provincial and national departments in the 2020/2021 financial year amounted to R166bn, up from R109.82bn in the previous financial year.

Alarmingly, the Eastern Cape education and health departments had the highest unauthorised expenditure —  R1.03bn and R1.02bn, respectively.

This is mainly because the health department is struggling with medico-legal claims while the education department has battled to keep spending on salaries and school needs within budget limits.

Medico-legal claims have weighed heavy on the provincial health department for years, with more than R3bn paid out on claims over six years.

Though the Eastern Cape is not the province with the highest claims, it is the region that has paid the most over the past three financial years.

Worryingly, billions more are likely to be paid out to settle unprocessed claims.

The situation has been under investigation by the Special Investigating Unit with the suspicion being that unscrupulous lawyers and officials are colluding to milk the system.

Be that as it may, it is an indictment on the quality of medical care provided by the state.

The fact is that many patients received inadequate care and this had tragic results in some cases, with obstetrics particularly problematic.

We hope the provincial government’s strategy, which includes ensuring cases are adequately defended while strengthening the department’s record-keeping and improving clinical care, helps.

The strategy is in line with the SA Law Reform Commission’s draft recommendations.

Whether it is the health department or a college, the same constraints apply.

No business or household can sustain spending way beyond its means, and neither can government entities which are charged with spending public funds for the public good, not wasting money paying damages after services were not properly rendered, or procuring shoddy goods and services without having the means to pay for them.

It is time officials comply fully with the public finance management rules and display discipline and prudence in their approach to expenditure — or face consequences.

HeraldLIVE