QUOTE
NATIONAL ASSEMBLY
FOR WRITTEN REPLY
QUESTION NO: 144(NW157E)
PUBLISHED IN INTERNAL QUESTION PAPER NO: 1-2014 OF 17 JUNE 2014
MS S V KALYAN (DA) TO ASK THE MINISTER OF INTERNATIONAL RELATIONS AND
COOPERATION:
(1) What are the details of all expenditure that was found to have been
(a) irregular and (b) wasteful in her department for each year from 1
April 2009 up to the latest specified date for which information is
available;
(2) in respect of each such finding of (a) irregular and (b) wasteful
expenditure, (i) what (aa) is the description thereof, (bb) is the
value thereof and (cc) action has been taken against the persons
accountable thereof and (ii) how much thereof (aa) has been recovered
and (bb) from whom? NW157E
REPLY:
UNQUOTE
1) (a) Irregular Expenditure
2008/09 None
2009/10 None
2010/11 None
2011/12 R 1.6 million
2012/13 R10.9 million
2013/14 R23 million
2) The details of irregular expenditure are outlined below:
⢠An amount of R1.6 million was spent in 2011/12 and reported as
irregular due to services rendered in relation to procurement done
in missions abroad without obtaining the minimum number of
quotations required, due to the limited number of suppliers that are
willing to work on a quotation basis as well as sole service
providers. The amounts were analysed and approved for condonment as
the services were regular and it was also established that no
financial loss was suffered by the department.
⢠An amount of R10.9 million reported in 2012/13 financial year was
due to services rendered in relation to procurement done in missions
without obtaining the minimum number of quotations required, due to
the limited number of suppliers that are willing to work on a
quotation basis as well as sole service providers. The amounts were
analysed and approved for condonment as the services were regular
and it was also established that no financial loss was suffered by
the department.
⢠An amount of R23 million worth of expenditure was reported in
2013/14 financial year as irregular due to services rendered in
relation to procurement done in missions abroad without obtaining
the minimum number of quotations required, due to the limited number
of suppliers that are willing to work on a quotation basis as well
as sole service providers. The amounts were analysed and approved
for condonement as the services were regular and it was also
established that no financial loss was suffered by the department.
Thus the department is working with National Treasury to develop
guidelines to address the departmentâs unique environment in
relations to foreign procurement, which is not covered within the
current procurement framework
1) (b) Wasteful Expenditure
2008/09 None
2009/10 None
2010/11 None
2011/12 None
2012/13 R1.1 million
2013/14 R23 000
2) The details of the wasteful expenditure are outlined below:
2012/13 R1.1 million
⢠Penalty charges for cancellation as per the contractual obligation
for accommodation and ground transport services which were
unavoidable.
⢠Final settlement of finance lease and this was a contractual
obligation. No disciplinary steps taken as this was a contractual
obligation.
⢠Duplicate payments as per invoices submitted for payment. The amount
has been recovered from the service provider concerned.
2013/14 R23Â 000 (twenty three thousand Rand)
⢠Penalty charges for cancellation of services as per the contractual
obligation. Investigations are underway.
