Question NW3838 to the Minister of Cooperative Governance and Traditional Affairs
12 December 2022 - NW3838
Spies, Ms ERJ to ask the Minister of Cooperative Governance and Traditional Affairs
With reference to a presentation on the 2021-22 audit outcomes to the Portfolio Committee on Cooperative Governance and Traditional Affairs, wherein the Auditor-General made the finding that payments were made in advance to implementing agents under the Community Works Programme, without evidence of goods and services having been received due to ineffective internal controls for approving and processing payments, what total amount was paid in irregular advance fees to the implementing agents; (2) whether any steps have been taken to recover the irregular payments; if not, why not; if so, what total amount has been recovered; (3) whether any of the implementing agents have been blacklisted from doing business with her department; if not, why not; if so, what are the relevant details?
Reply:
1. As at 31 March 2022 the balance of uncleared advances made to eight (8) Non-Profit Organisations (NPOs) was R26 252 990,01.
2. R20 822 071,84 of the total amount of R26 252 990,01 has been offset against retained project management fees due by the Department to NPOs, leaving a balance of R5 430 918,17 due by three NPOs to the Department. The Department is currently litigating against two NPOs to recover R4 498 778,40 and is still in discussions with one NPO to refund R932 139,76. Disciplinary action was taken against three employees in the Department for making advance payments in breach of departmental policies. One employee subsequently retired and the outcome of the disciplinary hearings for two employees have been completed and the Department is awaiting the outcomes of said hearings from the Independent Chairperson.
3. The Department has engaged the National Treasury through the Chief Procurement Officer on a number of Community Works Programme (CWP) related matters, including the possible blacklisting of NPOs found to be in breach of their Service Level Agreements (SLAs). The discussions with the National Treasury are ongoing.