Procurement processes tightened to fight fraud and corruption in Gauteng Provincial Government
12 Jun 2012
The Gauteng Provincial Treasury (GPT) has been properly capacitated to improve efficiencies in the process of procuring goods and services, and strengthening financial controls in the Gauteng Provincial Government.
“The improvement in supply chain management (SCM) processes of the province will enable us to reduce deviations from normal procurement processes, and thus avoid irregular and unauthorised expenditure,” Gauteng Finance MEC Mandla Nkomfe said during the presentation of the 2012 Budget Vote speech of GPT to the Legislature today.
GPT was reconstituted as a stand-alone department at the beginning of April to exercise control and oversight on all financial matters in the province. In line with Section 17 of the Public Finance Management Act, the department prepares the provincial budget and excise control over its implementation.
Furthermore GPT must “promote and enforce transparency and effective management of revenue, expenditure, assets and liabilities of provincial government departments and provincial public entities”.
The focus on supply chain management forms part of GPT’s efforts to root out fraud and corruption, which manifests itself primarily in procurement processes. Furthermore, this development is consistent with the Gauteng Anti-Corruption Strategic Framework which identifies fighting corruption as one of the key priorities of government.
“We simply cannot allow individuals to pillage public resources as that has detrimental effect to service delivery. We have to strengthen controls in this area to detect and prevent fraud and corruption; and protect the resources and public image of government in the province, MEC Nkomfe said.
“The department is currently engaging with the State Security Agency to vet all SCM officials in the province,” MEC Nkomfe added.
Developing an accountable and effective local government system
GPT is committed to ensure that local government works better. The department is continuing with efforts to strengthen intergovernmental relations with particular interest to municipal financial management.
Through the quarterly Municipal Finance Indaba forums, the department conducts vigorous one on one engagement with municipalities. These allow the provincial government to identify early warning signs and develop appropriate interventions in municipalities experiencing financial constraints.
The Debt Management Committee was established in 2009 to facilitate payment of outstanding government debt owed to municipalities continued to receive great support.
A total amount of over R1,5 billion has been transferred to municipalities from various departments within the province since the Debt Management Committee was established. These funds have eased budgetary constraints in some municipalities and ensured service delivery to communities.
GPT has broadened the scope of the Debt Management Committee to include national departments and parastatals utilising the services of municipalities in the province. The aim is to ensure that all outstanding payments for consumption of those services are made to the respective municipalities.
The interactions in the Debt Management Committee will be used by GPT to strengthen the system of intergovernmental fiscal relations; with specific reference to the interface between planning, budgeting and transferring of funds and as well as resolving debt owed between organs of state.
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Issued by: Gauteng Finance
12 Jun 2012
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