Chairperson, two of these reports deal with unauthorised expenditure in the Department of Correctional Services in respect of the 2008-09 financial year. A total of R483 million was classified as unauthorised by the Auditor-General. This related mainly to overexpenditure owing to the implementation of overtime payment to officials. Scopa felt strongly that this unauthorised expenditure should not be condoned, but that the shortfall should be funded through savings in the department's own budget.
In the Department of Defence and Military Veterans, some R60 million has been classified as unauthorised expenditure. Also, R40 million was overspent in the 2003-04 financial year on military peace-support operations owing to the deployment of the SANDF in peace-support initiatives in Africa, for which provision could not be made in the financial year as the deployment took place after the adjustment estimates process. Scopa fully understands the technical reason for this unauthorised expenditure and hence recommends that the amount be approved as a direct charge against the National Revenue Fund.
The Department of Social Development received a qualified audit for its 2009-10 financial statements. The Auditor-General found, inter alia, grant expenditure of more than R10 billion could not be verified as a result of limitations that were placed by the SA Social Security Agency, which acts as an agent for the department. In addition, large numbers of Sassa files were incomplete. Sassa's records also did not permit the application of alternative audit procedures regarding social assistance grant expenditure. What essentially happened was that Sassa caused the department to receive a qualification.
The Auditor-General rightly pointed to this dual accountability relationship, and Scopa agrees that these muddled lines of responsibility should be cleared. Sassa itself received the worst possible audit opinion, namely a disclaimer. The Auditor-General could not satisfy itself as to the existence, completeness, valuation and allocation to the value of R178 million of payables stated at R879 million, owing to limitations placed on the scope of its work, as sufficient and appropriate evidence was not made available for audit purposes.
The Auditor-General also pointed to numerous instances in which the agency's records were unavailable, incomplete or unreliable - clearly, a bad state of affairs. Scopa recently visited numerous Sassa paypoints and regional centres throughout the country and followed that up with discussions with Sassa's management and the Department of Social Development. We were encouraged by the commitment and resolve shown by Sassa's management under the leadership of its new head, Ms Virginia Petersen, to turn things around, and we trust they will succeed.
However, critical to any future success is the elimination of the uncertainty about the dual accountability relationship between Sassa and the department. The DA supports the full reports. Thank you, sir.