Question NW692 to the Minister of Tourism
01 April 2022 - NW692
Winkler, Ms HS to ask the Minister of Tourism
What (a) are the details of the progress on the investigations into irregular expenditure, non-compliance with supply chain management processes and a lack of oversight as indicated by the Auditor-General in the 2020-21 financial year and (b) consequence management has been implemented for those identified as responsible for the irregular expenditure?
Reply:
a) (i) Internal Audit investigated irregular expenditure associated with a pre- Budget Vote cook-off event which took place in Tembisa on the 17 May 2021. The first part of the investigation was concluded around October 2021; however, the report was inconclusive as the payment was not yet affected. The report is now concluded has recommended that a further investigation involving external parties must be conducted as internal audit does not deal with investigation of external parties. Terms of reference for the next stage of the investigation have been developed.
In addition to this the Minister received a letter from the Public Service Commission (PSC) which is also investigating the matter after a complaint was received in this regard. The department is cooperating with the investigation process and the outcome of this process is awaited.
(ii) In relation to an irregular expenditure associated with the physical security services provider, the Department approached the National Treasury (Office of the Chief Procurement Officer) to review the procurement process followed and make recommendations to the Accounting Officer. The feedback from National Treasury is awaited.
(iii) In relation to the double payment by R50,000 to one of the beneficiaries of the Tourism Relief Fund (TRF), the terms of reference for the investigation have been developed. This is pursued jointly between the Accounting Officer of the Department and the Accounting authority of South African Tourism.
(iv) Terms of reference have also been developed for a follow-up investigation on the possible fraud and corruption related to the irregularities found at South African Tourism.
(v) The information verification process in relation to the Tourist Guides Relief Fund is still underway. Terms of reference for the investigation will follow the verification process outcome.
The recent Constitutional Court Judgement that set aside the Preferential Procurement Framework Act 2017 Regulations has presented a challenge in the procurement of goods and services which impacts on the sourcing of investigators. The Department is engaging with National Treasury for applicable exemption for the procurement process.
To ensure continuous oversight strengthening, management has put in place an audit steering committee which regularly reviews the implementation and effectiveness of the controls as contained in the Audit Action Plan. The Executive Authority is also provided with reports on the implementation of the Audit Action Plan.
b) Upon receipt of final investigation reports, the Accounting Officer shall implement the recommendations.