ATC150312: First report of the Committee on Public Accounts on the unauthorised expenditure of the Presidency, dated 3 February

Public Accounts (SCOPA)

First report of the Committee on Public Accounts on the unauthorised expenditure of the Presidency, dated 3 February.
 

The Committee on Public Accounts (the Committee) considered and heard evidence on the unauthorised expenditure of the Presidency in relation to the 2008/09 and 2010/11 financial years, and reports as follows:

 

1. Background

 

The Presidency has an unauthorised expenditure amount of R42.939 million, made up of R14.511 million for the 2008/2009 and R28.428 million for 2010/11 financial years, respectively.

 

1. Unauthorised expenditure incurred in 2008/09 : R14 511 Million

 

The unauthorised expenditure in 2008/09 comprises the following items per economic classification:

 

1. R2.73 million was incurred from the National Orders ceremony which was brought forward, with the result that it had to be funded from a financial year in which it was not initially budgeted for;
2. R5.13 million resulted from legal fees in cases where the Presidency was a respondent;
3. R6.556 million relating to travel and subsistence was incurred following the President’s mediation responsibilities in Zimbabwe, and also when the Presidency attended the United Nations Convention on Rights of Persons with Disabilities; and
4. R0.225 million was incurred when the Presidency had to pay leave gratuity following the resignation of a former Minister in the Presidency in 2008.

 

1. Unauthorised expenditure incurred in 2010/11 : R28 428 Million

 

The unauthorised expenditure in 2010/11 comprises the following items per economic classification:

 

1. Due to the creation of two Ministries, the Ministry of Performance Monitoring and Evaluation and the Ministry of National Planning in 2009, the Presidency increased its establishment by filling 89 unfunded posts;
2. The Presidency had to provide on-going mediation in Zimbabwe as well as in Libya and the Presidency’s role in the Southern African Development Community Troika also contributed to the over expenditure in travel and subsistence;
3. The Presidency had a number of legal cases to respond to. Most of the litigations took longer than a year and the Presidency could not have anticipated that they would be finalised in any particular financial year;
4. The introduction of the presidential hotline was not well costed and budgeted for, and resulted in overspending on computer services and communication items; and  
5. The budget of transfers to households was over spent mainly due to payment of leave gratuities due to 13 resignations and 3 deaths.

1. Recommendation

 

In line with the provisions of section 34(1) of the PFMA, the Committee recommends that the unauthorised expenditure be approved with funding as a direct charge against the National Revenue Fund.

 

Report to be considered.