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Treasury DG: Misplaced memo contributed to irregular spending

Treasury and Sars are appearing before Parliament’s finance committee on Tuesday to discuss their annual reports and audited financial statements.

FILE: National Treasury's Director-General Dondo Mogajane. Picture: YouTube screengrab

CAPE TOWN - Treasury Director-General Dondo Mogajane says that a misplaced memo contributed R370 million of the R770 million in irregular expenditure it incurred in the past financial year.

Treasury and the South African Revenue Service (Sars) are appearing before Parliament’s finance committee on Tuesday to discuss their annual reports and audited financial statements.

While Auditor-General Kimi Makwetu gave Treasury an unqualified audit opinion, he flagged the irregular expenditure, saying effective measures were not taken to prevent it.

Mogajane says the missing memo related to approval granted in 2014 for the Municipal Financial Improvement Programme, involving nearly R370 million (R369.883 million) of the R769 million in irregular expenditure.

“We should actually not be in this space. We should be a model of excellence in so far as these matters are concerned. So that matter does not sit well with us. But I can say for now, at least half of the R769 million was due to a misplaced memo.”

Mogajane says the memo was subsequently found, leaving irregular expenditure at around R400 million.

But MPs from the ANC and the DA are not impressed and want to know whether there’s been any action taken against officials responsible for the irregular spending.

(Edited by Shimoney Regter)