Secretary for Defence (SecDef) Gladys Kudjoe is the accounting officer for the Department of Defence (DoD) and the Auditor General (AG) has pointed to five “material irregularities” (MIs) needing her urgent attention.
The “irregularities” are in Auditor General Tsakani Maluleke’s 2022 consolidated general report on national and provincial audit outcomes released last week.
They pertain to procurement non-compliance (two), uneconomical procurement (also two) and inefficient use of resources. As to what is ahead, her report has it the Auditor General’s office is “in the process of making a decision on further action to be taken”.
One “irregularity” concerns the purchase of COVID-19 drug Heberon from Cuba, the subject of a Public Protector investigation as well as reported to Minister Bheki Cele’s SA Police Service (SAPS) for investigation and possible criminal prosecution.
Others are in regard to a 2017 five-year asset and inventory management contract; supply and delivery of fuel; lease payments for unoccupied office space and purchase of a thousand infrared thermometers at prices higher than National Treasury recommendations.
Included in Maluleke’s recommendations is “effective and appropriate disciplinary action” against civilians involved and for SA National Defence Force (SANDF) Chief, General Rudzani Maphwanya, do the same with Military Command officials found to be involved. In this instance, as well as for other DoD “irregularities” in the report Maluleke has it neither the accounting officer (Kudjoe) nor Maphwanya implemented any remedial action.
The fuel supply “irregularity” is now with the Directorate for Priority Crime Investigation (DPCI), more familiarly the Hawks, where an investigation is “in progress”.
One recommendation as regards lease payments makes interesting reading. According to the report, Minister Thandi Modise’s DoD convened a second board of inquiry (BOI) into the “material irregularity” in December 2021. “In its conclusion the BOI acknowledged the financial loss but did not find anyone liable for the loss. We [the Auditor General] assessed the outcome of the BOI and concluded its conclusion was not appropriate and appropriate action was not taken to implement the recommendations. We are in the process of deciding on further action to be taken”.
The thermometer purchase was also the subject of a BOI – reconvened due to “shortcomings” in the first inquiry. “As at the date of the audit report, a new BOI had not been convened. We concluded appropriate action is not being taken to address the MI.”
