The Portfolio Committee on Tourism as we speak acquired a briefing from the South African Tourism (SAT) on its 2020/21 annual report as a part of its Budgetary Evaluate and Advice Report (BRRR) course of.
The Chairperson of the committee, Ms Tandi Mahambehlala, mentioned the report of the Auditor-Common of South Africa (AGSA) on SAT is just not wanting good because the entity acquired a professional audit with materials findings. She referred to as on the Division of Tourism to help the entity to enhance its efficiency.
The AGSA discovered fruitless, irregular and wasteful expenditure of R20 million. Ms Mahambehlala mentioned the entity didn’t adjust to the Public Finance Administration Act (PFMA); it had poor inside controls; it didn’t implement the Audit Motion Plan; and didn’t conduct satisfactory evaluations on the annual efficiency plan.
The AGSA discovered that there have been funds that had been made to 58 beneficiaries who’re employed by the municipalities; municipal entities, authorities departments and entities; 17 beneficiaries who had been deceased; 26 duplicate funds; 273 beneficiaries who acquired the South African Social Safety Company (Sassa) grant; 100 beneficiaries who acquired the tourism aid fund; 1172 beneficiaries with invalid Id Paperwork (IDs) or no ID numbers, and 641 beneficiaries who acquired Unemployment Insurance coverage Fund (UIF) funds.
The Minister of Tourism, Ms Lindiwe Sisulu, knowledgeable the committee that she is conscious concerning the AGSA findings and the final corrupt relationship between the previous Chief Govt Officer and Tourism Advertising South Africa. She made an endeavor that she’s going to meet with SAT Board and AGSA and can revert to the committee concerning consequence administration or restoration of the misplaced cash.
The interim Chairperson of the Board, Ms Mojanku Gumbi, knowledgeable the committee that that is the primary time in 17 years that SAT has acquired a professional audit opinion. She defined that SAT collaborates with the Tourism Enterprise Council of South Africa (TBCSA) which helps actions of SAT and that TBCSA follows its personal provide chain administration processes.
Ms Gumbi additional knowledgeable the committee that the previous CEO had resigned earlier than the investigation may very well be finalised and that the Board had picked up that funds had been made through the Collaborative Fund as an alternative of the levies.
Concerning the problem of the 2019/2020 capital funding of the Expanded Public Works Programme, the Director-Common of the Division of Tourism, Mr Victor Tharage, knowledgeable the committee that an investigation was performed on the funds constituted of 2005 to 2014 and that its consequence has been reported to the regulation enforcement companies and has been shared with the State Legal professional.
The committee additionally famous that the monetary efficiency of SAT didn’t correlate with the precise efficiency of its programmes. SAT had set 28 targets for the 2020/21 monetary 12 months, however of these targets the entity was capable of obtain solely 23. The committee expressed a priority over the entity’s overspending by 29 p.c.