Cape Town – The Special Investigating Unit (SIU) could soon conduct an investigation into procurement in the Department of Defence.
Defence Minister Thandi Modise hinted at this when she tabled her department’s budget for 2023/24 in the National Assembly.
Modise said her department received a qualified audit opinion on four matters from the auditor-general in 2021/22.
She said apart from matters related to the under-funding of the compensation of employees, there was R1 million in fruitless and wasteful expenditure as well as R475m in irregular expenditure.
“We received nine material irregularities from the auditor-general as at the end of financial year 2022/23.”
Due to under-funding of the compensation of employees, Modise said, they would be overspending by R3 billion on the budget in 2023/24.
“We are in constant engagement with the Secretary for Defence to make sure whatever it is within, we trace the problem of irregularities.
“The Secretary of Defence has been instructed to look and find solutions,” she said.
Modise also said an agreement had been signed with the School of Government to train soldiers responsible for procurement so that “we go down right to where the misstatements and misreporting happen”.
“I threatened at some point to dock and reduce the financial delegation so we can trace what happens where.”
She said those responsible for logistics and procurement that did not do what they were expected to do would be dealt with.
“A defence that can't look after its own resources cannot be responsible for taking care of the bigger business of looking after the resources of South Africa.
“We also are and we have discussed with the president that we might be bringing the SIU, and not just to the Department of Defence specifically, but we will also take it to the Department of Military Veterans.
“We want to make sure what was done in the past is corrected,” Modise said.
She also said the suspension of officials was an element to be dealt with.
Modise said they were almost at the point of constituting an interview panel to replace the chief financial officer and Secretary of Defence.
She added that the Secretary for Defence had been instructed to rejuvenate the SANDF.
“It is not only about recruiting young people but it is also about looking at systems, upgrading, rejuvenating capabilities, finding ways of preserving and maintaining.”
Modise added that they were working with industries in other countries to resuscitate military technology company Denel.
“It is in our interest to see a vibrant industry. It is in our interest to lure back skills the country lost.
“At Armscor, we begin to get on track. We identified capabilities where we were weak.”
The department has a budget of R51.1bn for 2023/24, with a decrease of R500m.
An amount of R30.6bn has been allocated for the compensation of employees (COE).
“This is underfunded by approximately R2.6bn based on the actual feet on the ground.
“The COE expenditure is approximately 64% of the total budget allocation,” Modise said.
She said R1.5bn has been allocated for Armscor, R2.8bn for accommodation charges, leases and municipal services, R1.5bn for air transport lift capability and repair and maintenance of navy defence systems, R1bn for deployments in the Democratic Republic of Congo, R800m for early packages of SANDF members and R850m for the deployment of SANDF members in Mozambique.
Cape Times