COVID-19: R500 billion and the case for procurement reform

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COVID-19: R500 billion and the case for procurement reform via TheCitizen_News

On 24 June next week Finance Minister Tito Mboweni will table the special adjustment budget. This budget will change the allocations made in the existing budget tabled in February this year to help fund government’s ongoing COVID-19 response plan.

Abrahams said she helped 600 struggling community members apply for a food parcel, but only about 50 people received one. The same happened for community members who applied for a COVID-19 relief grant. “Only a few got approval. Many were declined and only got an SMS with no alternatives offered. People are desperate for this money. It is mainly people who used to sell their fruits at street robots.

She could not give a full breakdown of all items procured and from whom as the department is still compiling and quantifying the amounts. “There are oversight structures in place to oversee the procurement of COVID-19 related supplies, Kekana said responding to questions on oversight measures to ensure spending is done within the prescripts of the law.

Kirsten Pearson of the Budget Justice Coalition told Spotlight any CFO has an important role to play in ensuring good governance in a department or entity. “It is to be expected that the public will have tough questions for a department when a CFO departs suddenly from a department where there have previously been issues of mismanagement of funds.

He explained the oversight mechanisms in place especially for the health department in the province due to the higher projected spending. “Weekly expenditure reports are analysed by the Provincial Treasury. These reports are analysed and price variances across similar items are further interrogated. The Auditor-General is working closely with the treasury to ensure that there is audit coverage over most procurement,” he said.

Globally the World Health Organisation estimates that between 10- and 25 percent of global health procurement is lost to corruption. In South Africa, data Statistics South Africa released last year on the 2017/18 financial year showed health was “the second biggest expenditure item for provincial governments, taking up 32% of total spending”.

“I’m sure after the virus is over we will hear many a story about misappropriation of funds and incorrect spending. However, right now, what is publicly available seems to be necessary.”

 

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