A recent statement by the Democratic Alliance revealed that the department of Co-operative Governance and Traditional Affairs CoGTA got into an excessive spending of about R1 billion under the leadership of former ‘four-day’ finance minister Des van Rooyen.
DA’s DA MP Kevin Mileham stated this in the parliament saying the department of Co-operative Governance and Traditional Affairs‚ under van Rooyen‚ reflected multi-million-rand irregular expenditure — including a bizarre 2‚582% increase in expenditure on consumables.
Van Rooyen was appointed minister of Finance by President Jacob Zuma after he sacked Nhlanhla Nene at the end of 2015.
The reshuffling which came as a surprise to many was considered the first move that negatively affected the state’s economy especially as the rand crumbled soon after. This also forced the president to within a space of four days, replace Van Rooyen with Pravin Gordhan who is the present finance minister.
Kevin Mileham of the DA noted that the department’s audit opinion also deteriorated from an unqualified opinion in the 2014/15 financial year, to a qualified audit opinion in the latest financial year (2015/16).
“Since assuming the office of minister in December 2015‚ subsequent to being hired and fired as finance minister over a weekend‚ Minister Des van Rooyen has presided over an increasingly mismanaged department,” Mileham said.
Mileham said during the 2015/16 financial year, the department has seen its current year irregular expenditure increase by 184%, from R155.4 million in 2014/15, to R442.5 million in 2015/16.
The department’s total expenditure increased by almost 15%, from just over R59 billion in 2014/15 to just over R68 billion in 2015/16:
- Employee compensation and salaries and wages both went up by 10% and 9%, respectively;
- Goods and services increased by 44.94% – an increase of R763.6 million;
- Spending on contractors by 42.89%, an increase of R544.5 million;
- Agency and support/outsourced services by 1122.94%, an increase of R6.8 million; and
- Spending on consumable supplies by 2581.94% from R4.6 million in 2014/15 to R122.2 million in 2015/16
According to him also, the wasted R1 billion could have been used to:
- Fill 2,272,727 potholes;
- Install 100,000 flush toilets;
- Build 7,692 RDP homes;
- Connect flush sanitation to 250,000 houses; and
- Connect electricity to 178, 571 low-income houses.
“In just one year, Minister Des Van Rooyen has driven CoGTA to a financial abyss, negatively impacting the running of local governments across the country and impeding much-needed service delivery,” Mileham said.