SanParks' Financial Statements

[Richprins]

Irregular Expenditure for 2018-19 financial year:

R198,738 000

https://pmg.org.za/files/191009SANParks ... tcomes.ppt

[Richprins]

Auditor General's Report:

19. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of strategic objective 2 - effectively managed ecosystem, species and cultural heritage assets. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information

Expenditure management22. Effective and appropriate steps were not taken to prevent irregular expenditure of R199 374 000 disclosed in note 31 to the annual financial statements, as required by section 51(1)(b)(ii) of the PFMA.

Internal control deficiencies

27. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report.

28. Management did not effectively review and monitor compliance assurance controls to effectively prevent transgression of laws and regulations in relation to the entity’s supply chain and contract management practices.

29. Management did not always ensure that formal information technology system controls were adequately implemented to ensure the reliability of the systems and the availability, accuracy and protection of information.

31. An independent consultant investigated allegations of possible misappropriation of the public entity’s heritage assets during the year. The report was issued to the board on 19 September 2018. The board is in the process of implementing recommendations from the investigation.

32. National Treasury investigated allegations of a material breach of contract relating to private donor funding for the implementation of a special project and related procurement processes. The report was finalised after year-end and the outcome of the investigation will be issued to the accounting authority on 1 August 2019

http://pmg-assets.s3-website-eu-west-1. ... 19_Web.pdf

Pages 166-170

[Lisbeth]

That's a lot of money even for a big company like SANParks

[Richprins]

In the bigger SOE's billions are stolen at a time...

[Lisbeth]

Isn't that exactly the sense of my phrase ?

Normally they are better at hiding it though. Being a statal owned company the right hand does not know what the left is doing and thus it is not hidden very well

[Klipspringer]

https://lowvelder.co.za/513148/sanparks ... penditure/?

SANParks take drastic steps to curb millions in fruitless and wasteful expenditure
The annual SANParks financial report for 2018/19 indicated R198 million was irregularly spent.
7 hours ago


The Auditor-General of South Africa (AGSA) commented in this report on management’s lack of monitoring compliance with applicable laws, which led to irregular spending.

In terms of the report by the AGSA, 60 per cent of all transgressions were due to contracts being expanded or changed without adhering to due process in terms of Treasury regulations.

It was stated in the report that the main contributor to the increase in irregular expenditure, “is attributed to the clean-up of the contract management register”.



Lowvelder questioned SANParks on the statement made and Reynold Thakhuli, SANParks acting head of corporate communications, responded. He stated, “The current system employed uses a manual contract register, which is not linked to the financial system that effects payment, therefore the system does not update in real-time when payments are made and it causes contract periods to be exceeded.”

Thakhuli further explained that the irregular expenditure disclosed in the ASFS incorporates accumulative sums from previous financial years. He declared that although this fruitless expenditure was incurred in contravention with supply chain management (SCM) requirements, the funds were spent in line with the objectives of the organisation.

SANParks specified that they are taking the following steps to avoid the reoccurrence of these contraventions by management staff:
• The implementation of an effective real-time contract management system that will effectively communicate to the financial system to enforce adherance to the stipulated contract period
• Project managers have been instructed to immediately request the extension and/or variation of contracts through the SCM to ensure compliance and same is recorded in the variation register

• Project managers must comply with all time frames and appoint new contractors at least six months before the expiry of contracts
• Compliance with due process is being closely monitored and guidance are given to officials to facilitate compliance
• SCM workshops will be conducted continuously to educate staff on the consequences of irregular expenditure
• Wasteful expenditure will be reported to the executive committee on a quarterly basis to create awareness among managing executives and to discipline officials involved.

The report by the AGSA also mentioned an independent consultant that investigated allegations of possible misappropriation of heritage assets. A report by the consultant was tabled to the SANParks Board on September 19, 2018.

Lowvelder inquired if any criminal charges were instituted against the persons responsible for the misappropriation of assets.

Thakhuli confirmed that no charges were laid, as no individual could be singled out as the culprit behind the loss of the unknown artefacts.

He said, “the final report of an independent investigation team had been handed over to law enforcement agencies for further investigation.” The recommendations by the board did include security upgrades and the removal of high-value artefacts from public displays until further notice.


AUTHOR
Charl PienaarJournalist

[Alf]

What a joke

[Lisbeth]

Has there always been an Auditor General controlling? I do not remember anything like this from former years

[Richprins]

At first it was auditor general, then KPMG...

Then both together, now AG with another company I forget.

[Lisbeth]