ATC110824: Ninth Report Unauthorised expenditure of the Department of Defence and Military Veterans
Ninth Report of the Committee on Public Accounts on the unauthorised expenditure of the Department of Defence and Military Veterans, dated 24 August 2011.
The Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Department of Defence and Military Veterans (the Department) in relation to previous years and reports as follows:
1. Funding of Museum
The Committee notes that unauthorised expenditure totaling R15,110 138 million had been incurred during the 1998/99 -2003/04 financial years to finance military museums.
The Committee indicated on its one-hundred-and-thirteenth report in 2003 that the unauthorised expenditure on the military museums would be approved with the passage of the new legislation.
The Defence Act, No. 42 of 2002 has been enacted and Section 80 (2) (i) of this Act provides that Military Museums is a function of the Department.
The Committee recommends that the R15,110 138 million should be approved by Parliament as a direct charge against the National Revenue Fund.
2. Contract for the hiring of photocopiers
The Committee notes that unauthorised expenditure totaling R5,498 million has been incurred during 1998/1999 to 2000/2001 financial years for rented photocopiers.
Photocopiers were rented outside of State Tender Board Contracts. The case was referred to court. The Court indicated that it was not willing to continue with the case due to a lack sufficient information- a nolle prosequi was granted.
The Committee, however, recommends that the amount of R5,498 million relating to the 1998/1999 to 2000/2001 financial years of unauthorised expenditure be approved without additional funding. Expenditure is to be funded from the budget of the Department.
3. Repair of furniture
The Committee notes an unauthorised expenditure totaling R0, 017 million incurred during 1999/2000 financial year. Tender procedures were not followed with the repair of furniture.
Having considered the above matter the Committee recommends that an amount of
R0, 017 million relating to the 1999/2000 financial year of unauthorised expenditure be approved without additional funding. Expenditure to be funded from the budget of the Department.
4. Peace support operation
During the 2003/2004 financial year the Defence Vote was over-spent by
R40,293 million. This over-expenditure was due to the deployment of the SANDF in the Peace Support Initiatives in Africa as ordered by the President, directed by the Minister and approved by Cabinet for which no provision could be made in that financial year as the deployment took place after the Adjusted Estimates process.
The Committee recommends that the amount of R40, 293 million relating to the 2003/2004 financial year, be approved as a direct charge against the National Revenue Fund.
The Committee further recommends that the Auditor-General should follow up on all matters raised above and report thereon in its audit outcome on unauthorised expenditure after the end of the 2011/12 financial year.
Report to be considered.
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