NATIONAL ASSEMBLY
QUESTION NO 148
Mr S M Gana (DA) to ask the Minister of Transport:
(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? NW161E
REPLY
|Â |(1) (a) |(2)(a)(i)(aa) |(2)(a)(i)(bb|(2)(a)(i)(cc) |(2)(a)(ii|(2)(a)(ii)(|
| | | |) | |)(aa) |bb) |
|Date |Details of irregular |Description of |Value |Actions taken |Amounts |Recovered |
| |expenditure |irregular | | |recovered|from whom |
| | |expenditure | | | | |
|August-08|A contract for plant care |Contract extended |6 330.42 |Condoned after a |N/a |N/a |
| |expired in October 2007 but |without approval | |verbal warning | | |
| |services continued until July | | |and suspension | | |
| |2008 | | | | | |
|November-|A contract for hygiene |Contract extended |5 068.44 |Condoned after a |N/a |N/a |
|08 |services expired in September |without approval | |verbal warning | | |
| |2007 but services continued | | |and suspension | | |
| |until November 2008 | | | | | |
|December-|Services rendered after expiry|Services rendered |6 826.80 |Tax clearance |N/a |N/a |
|08 |of a tax clearance certificate|after expiry of tax | |certificate was | | |
| | |clearance | |obtained and the | | |
| | |certificate | |matter was | | |
| | | | |resolved | | |
|October-0|Unauthorised services were |Procurement |131 456.10 |Condoned after a |N/a |N/a |
|9 |carried out for technical |procedures not | |written warning | | |
| |support for the 2010 soccer |followed | | | | |
| |World Cup | | | | | |
|April-09 |Work started on a Metered Taxi|Procurement |87 950.77 |Invoice was |87 950.77|Supplier |
| |Strategy before the Bid |procedures not | |disputed and the | | |
| |Adjudication Committee |followed | |supplier withdrew| | |
| |approved the bid | | |the claim | | |
|April-09 |Additional delivery costs were|Contract extended |22 416.50 |Condoned. The |N/a |N/a |
| |incurred due to a heavier |without approval | |employee left the| | |
| |Annual Report than quoted for | | |employ of the | | |
| | | | |Department before| | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|September|Extension of a contract for |Contract extended |103 828.42 |Condoned. |N/a |N/a |
|-09 |birthday celebrations of |without approval | |Disciplinary | | |
| |public entities without | | |process was | | |
| |approval | | |initiated but the| | |
| | | | |responsible | | |
| | | | |employee resigned| | |
|October-0|No procurement processes were |Procurement |45 577.20 |Condoned. The |N/a |N/a |
|9 |followed for hosting a Brake /|procedures not | |supplier was paid| | |
| |Tyre Testing / Watch Day |followed | |after judgment | | |
| | | | |against the | | |
| | | | |Department. The | | |
| | | | |employee left the| | |
| | | | |employ of the | | |
| | | | |Department before| | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|September|A car ownership and use model |Procurement |416 768.99 |Condoned. The |N/a |N/a |
|-09 |was developed without |procedures not | |employee left the| | |
| |obtaining competitive quotes |followed | |employ of the | | |
| | | | |Department before| | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|July-09 |Information technology |Procurement |60 500.00 |Condoned after a |N/a |N/a |
| |procurement process not |procedures not | |verbal warning | | |
| |followed |followed | |and suspension | | |
|April-09 |Network and cabling |Contract extended |64 627.30 |Condoned. The |N/a |N/a |
| |maintenance contract continued|without approval | |employee had left| | |
| |after expiry date | | |the employ of the| | |
| | | | |Department when | | |
| | | | |the irregularity | | |
| | | | |was discovered | | |
|Irregular expenditure 1 April 2009 to 31 March 2010Â |951 350.94 |Â |Â |Â |
|Â |Â |Â |Â |Â |Â |Â |
|March-11 |Amounts reduced / recovered |Amounts reduced / |(133 368.57)|Amounts reduced /|N/a |N/a |
| | |recovered | |recovered | | |
|Irregular expenditure added in 2010/11 relating to the prior |(133 368.57)|Â |Â |Â |
|year | | | | |
|Â |Â |Â |Â |Â |Â |Â |
|February-|Extension of scope of a |Contract extended |1 535 352.00|The invoices were|1 535 |Supplier |
|10 |contract without obtaining |without approval | |disputed and the |352.00 | |
| |prior approval. | | |claim was | | |
| | | | |withdrawn | | |
|August-10|An existing supplier was |Procurement |13 680 |Condoned after a |N/a |N/a |
| |appointed to assist with the |procedures not |000.00 |written warning. | | |
| |provision and operation of a |followed | |The matter is | | |
| |call centre for the 2010 | | |part of an | | |
| |Soccer World Cup. No | | |investigation | | |
| |competitive bids were invited | | |eventually | | |
| | | | |underway | | |
|June-10 |A bidder was appointed based |Procurement |140 000.00 |Condoned after a |N/a |N/a |
| |on price rather than on points|procedures not | |written warning | | |
| |scored |followed | | | | |
|August-10|An existing contract was |Contract extended |5 000 000.00|The matter was |N/a |N/a |
| |extended without approval |without approval | |investigated and | | |
| |instead of inviting new bids | | |subsequently a | | |
| | | | |written warning | | |
| | | | |was issued as per| | |
| | | | |the | | |
| | | | |recommendation of| | |
| | | | |the investigation| | |
| | | | |report | | |
|March-11 |A bidder was appointed without|Procurement |290 700.00 |Condoned after |Nil |N/a |
| |a valid original tax clearance|procedures not | |written warnings.| | |
| |certificate on file |followed | |Tax clearance | | |
| | | | |certificates | | |
| | | | |obtained for a | | |
| | | | |period covering | | |
| | | | |R152,874.00 of | | |
| | | | |the procurement. | | |
| | | | |Legal action was | | |
| | | | |taken to recover | | |
| | | | |the remaining VAT| | |
| | | | |of R16,926.00 | | |
| | | | |without success | | |
|Irregular expenditure 1 April 2010 to 31 March 2011 |20 646 |Â |Â |Â |
| |052.00 | | | |
|Â |Â |Â |Â |Â |Â |Â |
|March-11 |Further expenditure was |Contract extended |4 932 448.13|The matter was |N/a |N/a |
| |incurred during 2011/12 on an |without approval | |investigated and | | |
| |existing contract that was | | |subsequently a | | |
| |extended on 25 August 2010 | | |written warning | | |
| |without approval instead of | | |was issued as per| | |
| |inviting new bids | | |the | | |
| | | | |recommendation of| | |
| | | | |the investigation| | |
| | | | |report | | |
|March-11 |A "Least Cost Routing" service|Procurement |5 158 782.72|Condoned. The |N/a |N/a |
| |was concluded without |procedures not | |employee had left| | |
| |following tender procedures, |followed | |the employ of the| | |
| |to route calls from a costly | | |Department when | | |
| |route to a less costly one. | | |the irregularity | | |
| |The service was found to be no| | |was discovered | | |
| |longer economical and was | | | | | |
| |cancelled | | | | | |
|March-11 |Amounts reduced / recovered |Amounts reduced / |(1 688 |Amounts reduced /|N/a |N/a |
| | |recovered |226.00) |recovered | | |
|Irregular expenditure added in 2011/12 relating to the prior |8 403 004.85|Â |Â |Â |
|year | | | | |
|Â |Â |Â |Â |Â |Â |Â |
|March-12 |Further expenditure was |Contract extended |31 920 |The matter was |N/a |N/a |
| |incurred during 2011/12 on an |without approval |000.00 |investigated and | | |
| |existing contract that was | | |subsequently a | | |
| |extended on 25 August 2010 | | |written warning | | |
| |without approval instead of | | |was issued as per| | |
| |inviting new bids | | |the | | |
| | | | |recommendation of| | |
| | | | |the investigation| | |
| | | | |report | | |
|May-12 |A "Least Cost Routing" service|Procurement |1 865 495.31|Condoned. The |N/a |N/a |
| |was concluded without |procedures not | |employee had left| | |
| |following tender procedures, |followed | |the employ of the| | |
| |to route calls from a costly | | |Department when | | |
| |route to a less costly one. | | |the irregularity | | |
| |The service was found to be no| | |was discovered | | |
| |longer economical and was | | | | | |
| |cancelled | | | | | |
|March-13 |Publication arranged without |Procurement |66 120.00 |Investigated. The|N/a |N/a |
| |inviting competitive bids and |procedures not | |responsible | | |
| |no tax clearance certificate |followed | |employee resigned| | |
| |was obtained. | | |before | | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|March-13 |Publication arranged without |Procurement |60 192.00 |Investigated. The|N/a |N/a |
| |inviting competitive bids and |procedures not | |responsible | | |
| |no tax clearance certificate |followed | |employee resigned| | |
| |was obtained. | | |before | | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|March-13 |Additional work was |Contract extended |1 861 754.36|Condoned. The |N/a |N/a |
| |commissioned without approval |without approval | |official resigned| | |
| |for road safety media | | |before | | |
| |campaigns | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|May-13 |A supplier that was not |VAT incorrectly |275 000.00 |Condoned after |33 771.93|Supplier |
| |registered for VAT charged VAT|charged | |verbal warnings | | |
| | | | |were issued and | | |
| | | | |after the | | |
| | | | |incorrectly | | |
| | | | |charged VAT was | | |
| | | | |recovered | | |
|May-13 |Over payment to Centres of |Over payment |26 417.00 |The amount was |26 417.00|Centres of |
| |Development | | |recovered | |Development|
|May-13 |A bidder was selected based on|Procurement |12 407 |The matter is |N/a |N/a |
| |functionality instead of |procedures not |133.30 |being | | |
| |points scored |followed | |investigated | | |
|Irregular expenditure 1 April 2011 to 31 March 2012 |48 482 |Â |Â |Â |
| |111.97 | | | |
|Â |Â |Â |Â |Â |Â |Â |
|March-13 |Further expenditure was |Contract extended |1 606 088.60|The matter was |N/a |N/a |
| |incurred during 2012/13 on an |without approval | |investigated and | | |
| |existing contract that was | | |subsequently a | | |
| |extended on 25 August 2010 | | |written warning | | |
| |without approval instead of | | |was issued as per| | |
| |inviting new bids | | |the | | |
| | | | |recommendation of| | |
| | | | |the investigation| | |
| | | | |report | | |
|May-13 |Amounts reduced / recovered |Amounts reduced / |(26 417.00) |The amount was |N/a |N/a |
| | |recovered | |recovered | | |
|Irregular expenditure added in 2012/13 relating to the prior |1 579 671.60|Â |Â |Â |
|year | | | | |
|Â |Â |Â |Â |Â |Â |Â |
|June-13 |Publication arranged without |Procurement |492 411.60 |Investigated. The|N/a |N/a |
| |inviting competitive bids and |procedures not | |responsible | | |
| |no tax clearance certificate |followed | |employee resigned| | |
| |was obtained at the time of | | |before | | |
| |the arrangement | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|April-13 |A bidder was appointed based |Procurement |60 391.73 |The official was |N/a |N/a |
| |on price rather than on points|procedures not | |relieved of an | | |
| |scored |followed | |acting | | |
| | | | |appointment and a| | |
| | | | |verbal warning | | |
| | | | |was issued | | |
|December-|Bids were not invited for a |Procurement |345 237 |Condonement for |N/a |N/a |
|12 |construction project |procedures not |479.00 |the procurement | | |
| | |followed | |was obtained | | |
| | | | |prior to making | | |
| | | | |any payments. | | |
| | | | |Investigated by | | |
| | | | |National Treasury| | |
|Irregular expenditure 1 April 2012 to 31 March 2013 |345 790 |Â |Â |Â |
| |282.33 | | | |
|Â |Â |Â |Â |Â |Â |Â |
|August-13|Bids were not invited for a |Â |8 196 578.75|Condonement for |N/a |N/a |
| |construction project | | |the procurement | | |
| | | | |was obtained | | |
| | | | |prior to making | | |
| | | | |any payments. | | |
| | | | |Investigated by | | |
| | | | |National Treasury| | |
|March-12 |Scope of a contract was |Contract extended |989 999.87 |Investigated. The|N/a |N/a |
| |extended without approval |without approval | |responsible | | |
| | | | |employee was | | |
| | | | |suspended and | | |
| | | | |resigned before | | |
| | | | |disciplinary | | |
| | | | |steps could be | | |
| | | | |taken | | |
|Irregular expenditure added in 2013/14 relating to the prior |9 186 578.62|Â |Â |Â |
|year | | | | |
|Â |Â |Â |Â |Â |Â |Â |
|October-1|Additional work was |Contract extended |5 978 796.43|The matter was |N/a |N/a |
|3 |commissioned without approval |without approval | |investigated and | | |
| |for road safety programmes | | |subsequently a | | |
| | | | |written warning | | |
| | | | |was issued as per| | |
| | | | |the | | |
| | | | |recommendation of| | |
| | | | |the investigation| | |
| | | | |report | | |
|March-14 |Payments of conditional grants|Provisions of |637 459 |A draft charge |N/a |N/a |
| |were amended without following|Division of Revenue |000.00 |sheet was | | |
| |procedures according to the |Act not complied | |compiled, and | | |
| |Division of Revenue Act |with | |Treasury was | | |
| | | | |requested to | | |
| | | | |reverse the | | |
| | | | |amendments in | | |
| | | | |2014/15 | | |
|Irregular expenditure 1 April 2013 to 31 March 2014 |643 437 |Â |Â |Â |
| |796.43 | | | |