Transport and Public Works

Question by: 
Hon Lulama Mvimbi
Answered by: 
Hon Daylin Mitchell
Question Number: 
16
Question Body: 

(a) What are the details of the (i) irregular expenditure and (ii) fruitless and wasteful expenditure that has been incurred by his Department and its entity in (aa) 2019, (bb) 2020 and (cc) 2021, (b) how much was incurred as the result of not adhering to (i) National Treasury and (ii) Provincial Treasury instructions over the same period of time and (c) what are the (i) details of these instructions and (ii) reasons for not adhering to them?

Answer Body: 

The following Annexures provide for the response to Mr LL Mvimbi’s question posed to the Minister of Transport and Public Works:

Annexure A - Irregular Expenditure

Annexure B - Fruitless and Wasteful Expenditure

ANNEXURE A

Irregular expenditure

Year

(a)(i)

Details

(b)(i)

National Treasury Instructions

(b)(ii)

Provincial Treasury Instruction

(c)(i)

Detail of instructions

(c)(ii)

Reasons for non-adherence

(a)(i)(aa)

2019

R         640.00

 

 
  • Departmental Finance Instruction 4 of 2014 (Amendment 1 of 2017) – Catering expenditure.
  • S45 of the PFMA

Exceeding of threshold value.

(a)(i)(bb)

2020

R  117 881.44

Preferential Procurement Regulations, 2017

 
  • Non-adherence to Regulation 8(5) of the PPR, 2017 in terms of Local Content.

Minimum stipulated threshold for local production not adhered too with regard to the supply of protective clothing and safety boots.

(a)(i)(cc)

2021

R    16 810.00

National Treasury SCM Instruction Note 3 of 2016/2017

 
  • Paragraph 8.1: The Accounting Officer/Accounting Authority must only deviate from inviting competitive bids in cases of emergency and sole supplier status.
  • Paragraph 8.2: An emergency procurement may occur when there is a serious and unexpected situation that poses an immediate risk to health, life, property or environment which calls an agency to action and there is insufficient time to invite competitive bids.

IPS not utilised and approval to utilise emergency procurement not obtained.

 

R8 014 528.87

** Preferential Procurement Regulations, 2017

 
  • Non-compliance to Regulation 6(8), of the PPR, 2017

VAT removed from calculation of the preference points to make the bids more comparable.

 

To note: 

** The Constitutional Court declared the PPR, 2017 unconstitutional.  It is therefore necessary to obtain confirmation that if non-compliance occurred in terms of unconstitutional legislation, the expenditure incurred was in actual fact irregular in the first place. 

 

ANNEXURE B

Fruitless and Wasteful expenditure

Year

(a)(ii)

Details

(b)(i)

National Treasury Instructions

(b)(ii)

Provincial Treasury Instruction

(c)(i)

Detail of instructions

(c)(ii)

Reasons for non-adherence

(a)(ii)(aa)

2019

R         0.00

 

NA

NA

NA

NA

(a)(ii)(bb)

2020

R         0.00

NA

NA

NA

NA

(a)(ii)(cc)

2021

R15 089.00

NA

NA

NA

Fraud, forgery and theft with regard to the acquisition of diesel.

 

Date: 
Friday, April 22, 2022
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