MPs roasted the Department of Housing on Wednesday for lacking control over its subsidy system, resulting in irregular awards exceeding R300-million to government employees.
Parliament’s standing committee on public accounts expressed dismay at the vagueness of answers from director general Itumeleng Kotsoane and deputy Mziwonke Dlabantu regarding systemic loopholes.
“We did not get a sense that you are with us in terms of concern,” committee chairperson Themba Godi said at the conclusion of a four-hour hearing.
“You at senior level, you either do not see it or you are shielding these people.”
The department’s responses to problems highlighted by Auditor General Shauket Fakie in January were generic and academic, said Godi.
“It was really a serious challenge to sit and listen to responses that did not show a sense of full appreciation of the problems,” he told departmental representatives.
Fakie’s report found that subsidies had been awarded to government employees whose earnings exceeded the threshold, to deceased individuals, people with invalid ID numbers and to applicants younger than 21. Some people got more than one subsidy.
Based on an average subsidy of R15 000, the loss from such irregularities was put at a minimum of R322-million.
Fakie said many of the original application forms had been lost, making his audit difficult.
Kotsoane, who is new to the job, sat with his head in his hands for most of the proceedings as committee members asked how this could have happened, and what was being done to avoid a repeat.
He referred most of the questions to his deputy.
Dlabantu explained that part of the problem arose because provincial housing departments used to have separate, unlinked data systems.
Prodded by MPs, he said a national system was introduced in 2000. Fakie’s audit was done on subsidies awarded up to March 2004.
Since then, close to 2 000 more irregular subsidies were awarded, representing about R30-million.
Dlabantu said a skills shortage was partly to blame, but gave no details of the department’s needs. He could also not provide data on disciplinary action taken.
Committee members reacted sharply to a statement by the director general that provincial departments should account for themselves.
The national department had given provinces the means to run their affairs, Kotsoane said, adding the committee had a duty to ensure provincial departments spent their budgets properly.
But committee members said this was the role of the national department.
“You are the overall accounting officer,” said member Thandi Tobias, to approving nods from her colleagues.
Eddie Trent pointed out that Fakie’s report did not cover subsidies to ordinary members of the public, meaning the full extent of the problem was much wider.
“What worries me is that this is the main function of your department … and you cannot even get that right.”
Committee member Vincent Smith expressed amazement that the very same provincial staff members the department claimed lacked capacity, were given powers to override national decisions to turn down subsidy applications.
“Clearly you have people incapable of doing their work and instead of restricting their authority you give them authority to go carte blanche,” he said.
“You can be assured that when we do our resolution you will feel the pain of these types of statements. This is not acceptable.”
Several committee members said it appeared departmental officials had not read Fakie’s report, and had failed to do much about his findings.
A joint steering committee promised by Minister of Housing Lindiwe Hendricks in November, for example, was set up in March and has met only once.
Housing portfolio committee chairperson Zoliswa Kota expressed concern that the department extended its own deadline for rectifying the situation to December.
“We are worried because [the bulk] of the budget of housing goes to the … provinces. If these kinds of challenges arise, the question of value for money for government becomes a key priority in our minds.”
Godi said strong departmental leadership was key to achieving government objectives.
“Officials must not lose the political imperative of doing the right thing,” he said. “We fought for liberation for the state machinery to serve the interests of our people.” — Sapa
Parliament’s standing committee on public accounts expressed dismay at the vagueness of answers from director general Itumeleng Kotsoane and deputy Mziwonke Dlabantu regarding systemic loopholes.
“We did not get a sense that you are with us in terms of concern,” committee chairperson Themba Godi said at the conclusion of a four-hour hearing.
“You at senior level, you either do not see it or you are shielding these people.”
The department’s responses to problems highlighted by Auditor General Shauket Fakie in January were generic and academic, said Godi.
“It was really a serious challenge to sit and listen to responses that did not show a sense of full appreciation of the problems,” he told departmental representatives.
Fakie’s report found that subsidies had been awarded to government employees whose earnings exceeded the threshold, to deceased individuals, people with invalid ID numbers and to applicants younger than 21. Some people got more than one subsidy.
Based on an average subsidy of R15 000, the loss from such irregularities was put at a minimum of R322-million.
Fakie said many of the original application forms had been lost, making his audit difficult.
Kotsoane, who is new to the job, sat with his head in his hands for most of the proceedings as committee members asked how this could have happened, and what was being done to avoid a repeat.
He referred most of the questions to his deputy.
Dlabantu explained that part of the problem arose because provincial housing departments used to have separate, unlinked data systems.
Prodded by MPs, he said a national system was introduced in 2000. Fakie’s audit was done on subsidies awarded up to March 2004.
Since then, close to 2 000 more irregular subsidies were awarded, representing about R30-million.
Dlabantu said a skills shortage was partly to blame, but gave no details of the department’s needs. He could also not provide data on disciplinary action taken.
Committee members reacted sharply to a statement by the director general that provincial departments should account for themselves.
The national department had given provinces the means to run their affairs, Kotsoane said, adding the committee had a duty to ensure provincial departments spent their budgets properly.
But committee members said this was the role of the national department.
“You are the overall accounting officer,” said member Thandi Tobias, to approving nods from her colleagues.
Eddie Trent pointed out that Fakie’s report did not cover subsidies to ordinary members of the public, meaning the full extent of the problem was much wider.
“What worries me is that this is the main function of your department … and you cannot even get that right.”
Committee member Vincent Smith expressed amazement that the very same provincial staff members the department claimed lacked capacity, were given powers to override national decisions to turn down subsidy applications.
“Clearly you have people incapable of doing their work and instead of restricting their authority you give them authority to go carte blanche,” he said.
“You can be assured that when we do our resolution you will feel the pain of these types of statements. This is not acceptable.”
Several committee members said it appeared departmental officials had not read Fakie’s report, and had failed to do much about his findings.
A joint steering committee promised by Minister of Housing Lindiwe Hendricks in November, for example, was set up in March and has met only once.
Housing portfolio committee chairperson Zoliswa Kota expressed concern that the department extended its own deadline for rectifying the situation to December.
“We are worried because [the bulk] of the budget of housing goes to the … provinces. If these kinds of challenges arise, the question of value for money for government becomes a key priority in our minds.”
Godi said strong departmental leadership was key to achieving government objectives.
“Officials must not lose the political imperative of doing the right thing,” he said. “We fought for liberation for the state machinery to serve the interests of our people.” — Sapa
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