August 12, 2010
Submit your comment
Auditor General Terence Nombembe has found the Commission for Conciliation, Mediation and Arbitration (CCMA) failed to follow procurement rules and wasted millions by failing to deduct taxes and allowing staff to abuse travel allowances.
In a report tabled in Parliament on Thursday, the auditor general said there had been wasteful expenditure of R1.2 million on travel expenses and R11 million on penalties and fines to the South African Revenue Service because it did not collect tax from part-time commissioners.
The travel expenses related to the CCMA's appointing a corporate systems manager and three commissioners at its head office in Johannesburg. It then paid for weekly flights for them to commute from Cape Town for the whole of last year because they did not relocate.
The auditor general found the CCMA failed to follow Treasury regulations on appointing service providers for the supply and maintenance of printing services and IT services.
It also appointed a quantity surveyor and project manager for office renovations, a company to redesign the CCMA's web page and an accounting firm without following procurement regulations.
The same applied to hiring a company to supply portable voice recorders, the report stated.
Nombembe found the CCMA governing body should address his findings "decisively" with the help of senior management, but added it would not be sufficient to deal with the specific cases of non-compliance. Rather the culture of management should be reviewed to prevent future problems.
"Corrective actions limited to the specific individual findings alone would most likely address symptoms, but not the underlying causes. This approach carries the risk of deficiencies recurring in future," he said.
The auditor general's investigation was prompted by a list of allegations handed to him by the labour department in October 2009. - Sapa