43% of Gauteng government entities have an acting CEO or CFO while residents endure atrocious service delivery

Gauteng residents are currently suffering from no running water, electricity outages and a harsh economic climate. During our scrutiny of the provincial government’s performance as part of the Standing Committee on Public Accounts (SCOPA) week, a correlation emerged that is often ignored because it seems to be unrelated to daily suffering.

The Gauteng Provincial Government have a number of key vacancies in departments that have not been permanently filled and instead have officials acting in the positions.

This information was revealed by the Auditor-General of South Africa in its report on the audit outcomes for our province.

According to this report the following departments have acting officials in key positions:

  • Office of the Premier- Accounting Officer (1)
  • Economic Development- Head of Supply Chain Management (1)
  • Health- Accounting Officer, Chief Financial Officer and Head of Supply Chain Management (3)
  • Cooperative Governance and Traditional Affairs- Accounting Officer (1)
  • Roads and Transport- Accounting Officer and Head of Supply Chain Management (2)
  • Community Safety- Head of Supply Chain Management (1)
  • Agriculture and Rural Development- Chief Financial Officer (1)
  • Sports, Arts, Culture and Recreation- Chief Financial Officer and Head of Supply Chain Management (2)
  • e-Government- No Head of Supply Chain Management (1)

While the following entities have acting officials in key positions;

  • Gauteng Gambling Board- Chief Financial Officer (1)
  • Gauteng Film Commission- Chief Executive Officer (1)
  • Cradle of Human Kind- Chief Executive Officer (1)
  • Dinokeng- Chief Executive Officer (1)
  • G-Fleet- Chief Financial Officer (1)
  • MEDSAS- Chief Financial Officer (1)
  • Gauteng Partnership Fund- Head of Supply Chain Management (1)

According to the Auditor General’s report, because these vacancies have not been permanently filled, it will likely have a negative impact on the 2021/22 audit outcomes.

Persons who perform in an acting capacity often operate in very uncertain, even toxic conditions where decisions cannot be made, forward planning is not done, and staff cannot be managed effectively due the uncertainty of working in an acting capacity.

This trend is extremely concerning as it hampers is the effectiveness of service delivery to the residents of Gauteng. Having critical vacancies like those of CEOs, CFOs and Head of Supply Chain Management is extremely important to bring stability to the department and entity.

The DA has learnt from our experience in governance that a stable and capable bureaucracy is of paramount importance. Filling vacancies with capable, fit for purpose staff helps to ensure that the departments run efficiently and that there is value for money where goods and services need to be procured.

Furthermore, corruption can be clamped down and there will be no room for properly mandated and trained officials to deviate from the guidelines set out by Treasury when it comes to the effective delivery of services to our residents.

It emerged during the SCOPA hearings that in many instances, acting staff are not competent and capable of fulfilling their duties. Cadre deployment renders competent bureaucrats uncertain about their future prospects and career paths. The situation can be remedied in the long term by ending the cadre deployment policy of the ANC, and replacing it with a fit for purpose recruitment and selection policy.

The DA will continue to monitor the timeous filling of vacancies so that the performance of all our departments can be on the same level that will ensure seamless service delivery to our residents and we will continue to advocate for benchmarked recruitment policies that progressively realise a capable state.

Seventh clean audit for DA-led Midvaal Municipality

The Democratic Alliance (DA) is proud to announce that the DA-led Midvaal Municipality is continuing its good governance practices and managing its financial resources in a sustainable manner.

The Auditor General has awarded the municipality another clean audit for the 2019/20 financial year, the seventh consecutive award since 2013, making it the best performing municipality in Gauteng.

Receiving this accolade proves once again that where the DA governs, we do our utmost to ensure that taxpayers’ money is spent on delivering services efficiently to our communities.

The DA commends Mayor Baloyi and his team for another positive audit outcome, and most importantly we thank the residents of Midvaal for their support.


Gauteng Roads and Transport Department underspent by R637 million in 2019/20, while road infrastructure continues crumbling with potholes

The Democratic Alliance (DA) will be engaging the MEC for Roads and Transport, Jacob Mamabolo regarding the gross underspending by the Gauteng Department of Roads and Transport during the 2019/20 financial year budget.   

This information was revealed in the Department’s annual report, where, according to the Auditor-General, the material underspending for the Department amounted to R637 million.   

This has resulted in a 77% increase in underspending compared to the previous financial year, where the department underspent by R359,6 million.  It is concerning to note that some of the underspending occurred in the Transport Infrastructure programme to the tune of R81 million. According to the annual report, there was underspending on construction as a result of service providers not being appointed as planned due to unanticipated challenges during the tender process, and the construction of a road not proceeding due to land grabbing.   

Furthermore, this Department has also failed to meet its target of 11 designs to be completed for the 2019/20 financial year due to delays in the appointment of the probity auditors and probity audit processes. In addition, the target of creating 250 Expanded Public Works Programme jobs was not met where the Department only managed to create 62.   

Some of the key causes of this under expenditure is failure in the supply chain management process that awards tenders and thus delays projects and resultant expenditure. Non-performing contractors further exacerbates the problem. Not only does this lead to delays in the road construction programme of the province but is also over-inflates the price tag for delayed projects.

Material underspending by this Department has resulted in further decline in the quality of the province’s roads. Ensuring that roads are well maintained is important if the Department is committed to seeing a reduction in road accidents and fatalities. This underspending could also lead to the Department losing more money when the new budget is allocated after failing to spend the total of their previous budget.

Underspending by this Department is now becoming the norm. Political leadership is vital to steer the Department in the right direction so that road infrastructure service delivery can be effectively and optimally rolled out.




Gauteng Enterprise Propeller fails to submit performance, financial statement for 2019/20

The Democratic Alliance is concerned that the Gauteng Enterprise Propeller (GEP) has failed to submit its annual report for the 2019/20 financial year.

The Auditor-General’s office has picked up issues with the financial and performance reports of the GEP and has asked them to correct these reports before expressing an opinion.

This is extremely worrying as the instability and non-performance of this entity is having a negative impact on small businesses in the province. The GEP is still sitting on R250 million that has been earmarked to assist small businesses in Gauteng that faced hardship during the Covid-19 pandemic.

This amount was allocated during the adjustment budget in July. To this day, the GEP has failed to spend a cent towards assisting small businesses.

In addition, more than three years later, the GEP is still without a permanent Chief Executive Officer and Chief Operations Officer and only have officials acting in these positions.

It is clear that this entity is failing on its mandate to promote, foster and develop small businesses in Gauteng. The only way in which we are able to combat the high unemployment rate in the country is if there is investment in these businesses.

If the newly appointed MEC for Economic Development, Parks Tau is serious about rebuilding the Gauteng economy, then he must sort out the GEP once and for all.

R750m underspend by Gauteng Health Department

The Gauteng Health Department failed to spend a whopping R750 million of its 2018/19 budget despite the huge backlogs in providing quality health services.

This information is revealed in the Auditor-General’s report which was made public in the Legislature last week.

The major underspends by category were as follows:

  • Machinery and Equipment: R556 million
  • Goods and Services: R338 million
  • Buildings and other fixed structures: R115 million
  • Compensation of employees: R92 million
  • Transfers to non-profit institutions: R49 million

These underspends were partially offset by R386 million overspent because of medico-legal claims.

Another disappointment is that there was

R2.86 billion irregular expenditure and R26.7 million fruitless and wasteful expenditure.

As a result of the failure to spend the full R46.76 billion budget, R439 million is to be returned to the treasury.

This shows yet again that financial mismanagement is rife in this department despite manifold promises of improvement.

What makes the Government think they can run a complex NHI when the public health system in Gauteng remains mired in crisis?

Auditor-General rebukes Gauteng Health Department for lack of controls and irregular expenditureby Jack Bloom MPL – DA Gauteng Shadow Health MEC

by Jack Bloom MPL – DA Gauteng Shadow Health MEC

The Auditor-General’s report on the Gauteng Health Department for 2017/18 rebukes the Department for lack of controls, unreliable information, and racking up irregular expenditure of R1.7 billion and fruitless and wasteful expenditure of R38 million.

This report was tabled last month in the Gauteng Provincial Legislature.

The A-G disclaims “the usefulness and reliability of the reported performance information” and says that “senior management did not ensure that sufficient controls are in place to prepare accurate and complete financial statements and performance reports that are supported and evidenced by reliable information.”

Furthermore, “there was a lack of monitoring controls to ensure compliance with laws and regulations including procurement and contract management, expenditure management and revenue management”.

The Department is criticized for not taking effective steps to prevent irregular expenditure of R1.7 billion, and fruitless and wasteful expenditure of R38 million.

Most of the irregular expenditure was caused by procurement of goods and services without following competitive bidding processes, and a large part of the wasted expenditure was due to interest levied on overdue accounts.

Details of the irregular expenditure include the following:

  • R679 million on security contracts;
  • R119 million on over-expenditure on employee compensation;
  • R91 million on supply chain processes not followed;
  • R91 million on outsourced nursing staff ; and
  • R3.8 million on Mental Health NGOs, which the SIU is investigating

The report noted that “various investigations, based on the allegations of procurement irregularities, fraud, theft and negligence, are being performed by the department dating back from prior periods.”

I am alarmed that the Department is still disregarding the necessary controls to curb irregular and wasteful spending.

This will only change when proper financial systems are put in place and disciplinary action is taken against officials who incurred or permitted irregular expenditure, which the report says did not occur.

I am disappointed that so little progress has been made in fixing the management of this Department which has never recovered from the rampant corruption when Brian Hlongwa was the Health MEC from 2006 to 2009.

Gauteng Health MEC Gwen Ramokgopa should be fired for her manifold failures, including the deaths of babies from hospital-acquired infections and the unsafe conditions that led to the disastrous fire at her head office.

G-fleet has skipped another red light

G-fleet management has once again failed to implement a successful turn-around strategy to ensure that the entity becomes solvent and ceases to haemorrhage public funds.

Despite receiving an unqualified audit opinion from the Auditor General, the entity racked up R2.9 million in fruitless and wasteful in the 2016/17 financial year, up R1 million from the previous year.

Irregular expenditure for the year under review skyrocketed from R2.5 million in 2015/16 to R17.1 million. This has allegedly been incurred on renewing expired leases, vehicle tracking systems, security and cleaning service contracts.

Earlier this year it was revealed that the entity was owed more than R370 million by client departments – namely the Gauteng Departments of Health and Infrastructure as well as the Office of the Chief Justice.

The entity is also undergoing a forensic investigation into the abuse of petrol cards and the use of vehicles for non-work related activities.

In 2015 the Chief Executive Officer and Chief Financial Officer were relieved of their duties and new members were brought in to stem the rot that had become endemic at G-fleet.

Two years later, very little has been done to steer the entity on the right path.

Gauteng MEC for Roads and Transport, Ismail Vadi, must now take a hands-on approach to G-fleet, roll up his sleeves and start taking action against individuals who are abusing the system. The Accounting Officer must be brought to book for the increased irregular and wasteful expenditure.

The DA will write to the MEC to request an update on the forensic investigation, as well as the details of the plan to recoup funds for errant client departments.

Auditor General flags Gauteng Liquor Board for R7.2 million loss

Despite receiving an unqualified audit, the Auditor General of South Africa (AGSA) has flagged the Gauteng Liquor Board for incurring a R7.2 million loss during the 2016/17 financial year – placing uncertainty on the entity’s ability to continue to function.

Coupled to this, the Liquor Board has failed to collect R4.9 million due to poor controls. Penalties were also not charged for late renewal of licenses in terms of Section 100 of the Gauteng Liquor Act.

The AGSA indicated that the Accounting Officer of the Liquor Board failed to exercise adequate oversight over financial reporting, compliance and related internal controls which resulted in material amendments to the annual financial statements and non-compliance with key legislation.

The Liquor Board is no stranger to controversy.

Over the past year the DA has been inundated with complaints from residents and business owners about the way the board conducts itself.

It often grants licenses without complying with its own legislation, allowing for the illegal trading of alcohol. It also ignores objections from residents when a proposed liquor outlet applies for a license.

The Liquor Board for all intents and purposes has gone rogue and needs to be reeled in fast.

Gauteng Economic Development MEC, Lebogang Maile needs to take a firm grip on the entity to ensure that it stabilises not only its finances but also to ensure that it carries out the mandate that it has to ensure responsible alcohol sale and use.

The DA is currently dealing with a number of complaints against the board and will continue to put pressure on MEC Maile to get his house in order.

ANC exposed as defenders of corruption in Joburg Council

Yesterday, the ANC caucus in the Joburg Council chose to walk out en masse in an attempt to prevent quorum on two pivotal voting items in the continued fight against corruption.

The first, was a vote to move the anti-corruption unit, headed by General Shadrack Sibiya, within the structures of the City where it would not report to either the City Manager or Mayor’s offices and therefore strengthen its ability to investigate anyone without fear or favour.

Thus far, General Sibiya’s team has exposed over R62 million worth of fraud and corruption committed under the ANC administration in Joburg. Mayor Mashaba has stated that this is just the tip of the iceberg and current investigations are looking into matters valued at billions of Rand.

The second item, was a vote to appoint the new head of the Group Risk Advisory Services (GRAS).

GRAS plays a fundamentally important role in the City as an internal audit and risk assessment body. GRAS has been littered with weaknesses and inefficiencies in the past. Over the past five years under an ANC government, there was disgracefully over R5.3 billion in unauthorised, irregular, fruitless and wasteful expenditure in the City of Joburg.

The Auditor General in his most recent report, cited that the City failed to even pick up on 69% of the irregular expenditure in the City in the past financial year. It was only identified during the audit process and not detected by the City’s monitoring processes. This perpetuated a culture of corruption and secrecy under the ANC in Joburg.

The DA is attempting to fix this sad state of affairs by appointing a professional accountant to this position.

The DA will not allow the ANC to hamper the fight against corruption in the City of Joburg. If the ANC wants to go to court, let them explain why they are trying to prevent efforts to strengthen the fight against corruption.

Mayor Mashaba has stated publicly that corruption is public enemy number one and it is clear that he takes this seriously with the number of investigations and arrests that have taken place since he came into office.

The DA will continue to bring change to the residents of Joburg by exposing corruption and ensuring that those found guilty are sent to jail.

Every cent of public money must go to those who deserve it, the residents of Joburg.
The ANC’s attempts to prevent progress in the City of Joburg are very telling. Who are they trying to protect? Once again the ANC has exposed their true colours as the defenders of corruption.
Media Enquiries

Khume Ramulifho MPL
DA Johannesburg Constituency Head
082 398 7375

Emfuleni Mayor’s alleged bogus financial statements on Shakespeare Inn


Former Sedibeng District Municipality Mayor, now Mayor of Emfuleni, Simon Mofokeng, submitted alleged bogus financial statements on services rendered by the Shakespeare Inn in Vanderbijlpark to the provincial Legislature in a question posed by the DA.


While Mofokeng was mayor of Sedibeng, alleged suspicious transactions amounting to just over R2million took place at Shakespeare Inn.


No information was provided on what exactly the transactions, ranging from R15 000 – R30 000 per month, were spent on.


It is alarming that these transactions were not picked up during the municipal audit into Sedibeng.


The DA will submit these transactions to the Auditor-General in order to assist with the investigation into Simon Mofokeng’s alleged money laundering scheme.


Sedibeng and Emfuleni are no longer financially viable municipalities due to the looting of the municipal coffers by public officials.


Furthermore, the DA has also requested Cooperative Governance MEC, Paul Mashatile, to launch a departmental investigation into the matter.


Residents of Sedibeng and Emfuleni have had enough of corruption and the alleged looting of public money. It is high time that all dodgy officials and elected representatives are held to account.

Media Enquiries:

Kingsol Chabalala MPL
DA Gauteng Constituency Head – Emfuleni North
060 558 8299

Yaseen Carelse
Social Cluster Manager
076 721 8613

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