Auditor-General hopeful State can recoup over R500m blown on COVID-19 West Rand hospital
In 2020, the Gauteng Department of Health spent R588 million refurbishing the Anglo Gold Ashanti Hospital, a case Tsakani Maluleke says is a clear material irregularity.
Auditor-General Tsakani Maluleke briefs the media on audit outcomes of national and provincial departments. Picture: GCIS
JOHANNESBURG - The Office of the Auditor-General (AG) says it is still hopeful the State can recover the over half a billion rand the Gauteng Department of Health spent on refurbishing a privately-owned hospital.
The AG, Tsakani Maluleke, spoke at the National Press Club on Thursday, reflecting on the five years since her office was given the powers of issuing material irregularities.
Material irregularities happen in instances where there is a clear case of non-compliance with financial legislation resulting in a loss of public resources — the strongest notice the AG can issue.
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In 2020, the Gauteng Department of Health spent R588 million refurbishing the Anglo Gold Ashanti Hospital in the West Rand.
The department initially said the 181-bed hospital was donated to the provincial government as a COVID-19 care facility.
However, a year after the multimillion refurbishment, the department said it had cancelled its lease with the mining company to use the hospital.
Maluleke said a clear material irregularity took place in this situation.
“Now, that should never have happened, because that is not a property that was owned by government. Fortunately, the SIU [Special Investigating Unit] is now working on the matter, and there is attention to dealing with it, but as we sit, R490 million [the amount budgeted for the refurbishment but later ballooned to R588 million] of public resources had been lost due to this public exercise.”
Maluleke said she hoped some of the money could be recouped.
MUNICIPAL INSTABILITY
The AG, meanwhile, said instability in municipal executive positions is a major factor in the mishandling of public monies.
In the recent AG’s annual report, only 34 municipalities out of the country’s 257 achieved a clean audit status.
Maluleke said the proposed national framework towards the professionalisation of the public sector would go a long way in fixing this.
She said her office had observed municipalities that repeatedly achieve clean audits had accounting officers with longer tenures in the positions.
“Where they have been in their role for five years, you see a clean audit outcome that has been maintained. The basics are happening, and it is those basics that allow them to prevent problems and to act on problems quickly. Clean audits are not ones where things are perfect, but they do detect problems.”