28 November 2019 - NW1412
Ismail, Ms H to ask the Minister of Health
(a) What is the total number of key vacancies at the SA Health Products Regulatory Authority that were not filled, (b) what are the details of the (i) irregular expenditure and (ii) material irregularities incurred by the entity for the previous financial year and (c) how is his department ensuring that the entity’s (i) expenditure and (ii) procurement processes are in line with applicable legislation?
b) (i) Irregular expenditure
- Three (3) written quotations were not approved by the delegated official R63235
- Payment made to supplier is in excess of the quoted amount (difference R12, 750) R97750
- Supplier unqualified based on the awarding of the quotation was not fair, transparent, competitive and cost effective which is in contravention of Section 16A3 of the Treasury Regulation and the Preferential Procurement Policy Framework Act of 2000 which therefore results in irregular expenditure R1045800;
(c) (i) The Department has put in place the following mechanism to ensure that expenditure is in line with applicable legislation:
- The Minister has approved the SAHPRA Materiality and Significance Framework in terms of Sections 50 and 55 of the PFMA and Treasury Regulation 28.3, which define significant, material and parameters of transaction that the institution is authorised to approve. The purpose of the Framework is to regulate the disclosure of material facts by public entities to the Executive Authority. This includes information to be provided in terms of the Annual Report and financial statements, as well as requests for approval from the Minister to participate in certain significant transactions, and
- The Department monitors SAHPRA’s budget on a quarterly basis to ensure that the actual expenditure is aligned to the budget
(ii) The Department has put in place a mechanism to ensure that the SAHPRA report on quarterly basis on the level of compliance to the PFMA which includes the following:
- Ensuring that SAHPRA has a delegation of authority that define powers entrusted or delegated to officials within the organisation,
- Ensuring that SAHPRA takes appropriate disciplinary steps against employees of who have made or permitted irregular or fruitless and wasteful expenditure,
- Ensuring that SAHPRA has an appropriate procurement and provisioning administration system, which is fair, equitable, transparent, competitive and cost-effective, and
- Ensuring that SAHPRA has mechanisms in place to prevent irregular, fruitless, and wasteful expenditure.