THE Eastern Cape housing, local government and traditional affairs department has failed to act on issues raised repeatedly by the auditor-general since the 2003-04 financial year, according to a Public Service Accountability Monitor study.
The governance monitoring body’s study revealed that the department’s 2006-09 annual performance plan failed to address audit queries and did not state what measures would be taken to improve poor financial management.
Eastern Cape is one of the poorest provinces in the country and about 800000 people are in need of reconstruction and development programme houses.
Although the department had improved its control over the conditional grant — resulting in it getting a qualified audit opinion instead of a disclaimer for three consecutive years — there had been no improvement in its debt and asset management.
The department took over the administration of rental housing from the provincial housing board in 2001. However, by the end of the 2006-07 financial year, the department had still not determined the exact number of houses and their value, the study said.
“The auditor-general also noted that there is housing debt amounting to R18,5m, but that the ‘recoverability of this amount is doubtful as it contains significant arrears’.”
It said that in 2005-06, the auditor-general highlighted the same concern with regard to the housing stock transferred to the department in 2001.
“In addition, he noted that related to these rental houses was debt of R21,1m. Again, the auditor-general stated the recoverability of this amount was ‘doubtful’,” the study noted.
The same issues were mentioned by the auditor-general in 2003-04 and 2004-05.
The study found the repetition of the auditor-general’s findings and a further wide range of issues raised the concern that the department had failed to adequately plan and improve its performance in respect of housing debt, and asset and conditional grant management.
“These are all important areas that affect the department’s ability to deliver houses effectively and efficiently,” the study read.
It said the MEC and other responsible officials should take action against officials responsible for the continued state of affairs.
The department had also failed to act on repeated recommendations made by portfolio committees on skills shortages and vacancy rates.
In May and November 2006, the committees repeatedly told the department to urgently fill vacant posts, primarily related to the housing programme to ensure housing delivery, and asked the department to submit a recruitment plan and quarterly update reports
The study said the department’s response was that it was filling vacant posts and it included a timetable for a number of posts. - Business Day - News Worth knowing
The governance monitoring body’s study revealed that the department’s 2006-09 annual performance plan failed to address audit queries and did not state what measures would be taken to improve poor financial management.
Eastern Cape is one of the poorest provinces in the country and about 800000 people are in need of reconstruction and development programme houses.
Although the department had improved its control over the conditional grant — resulting in it getting a qualified audit opinion instead of a disclaimer for three consecutive years — there had been no improvement in its debt and asset management.
The department took over the administration of rental housing from the provincial housing board in 2001. However, by the end of the 2006-07 financial year, the department had still not determined the exact number of houses and their value, the study said.
“The auditor-general also noted that there is housing debt amounting to R18,5m, but that the ‘recoverability of this amount is doubtful as it contains significant arrears’.”
It said that in 2005-06, the auditor-general highlighted the same concern with regard to the housing stock transferred to the department in 2001.
“In addition, he noted that related to these rental houses was debt of R21,1m. Again, the auditor-general stated the recoverability of this amount was ‘doubtful’,” the study noted.
The same issues were mentioned by the auditor-general in 2003-04 and 2004-05.
The study found the repetition of the auditor-general’s findings and a further wide range of issues raised the concern that the department had failed to adequately plan and improve its performance in respect of housing debt, and asset and conditional grant management.
“These are all important areas that affect the department’s ability to deliver houses effectively and efficiently,” the study read.
It said the MEC and other responsible officials should take action against officials responsible for the continued state of affairs.
The department had also failed to act on repeated recommendations made by portfolio committees on skills shortages and vacancy rates.
In May and November 2006, the committees repeatedly told the department to urgently fill vacant posts, primarily related to the housing programme to ensure housing delivery, and asked the department to submit a recruitment plan and quarterly update reports
The study said the department’s response was that it was filling vacant posts and it included a timetable for a number of posts. - Business Day - News Worth knowing