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EXPENDITU NDITURE RE 1 2 3 4 CASE STUDY MR B WAS A SUPPORT - PowerPoint PPT Presentation

Apr 27, 2023 •251 likes •409 views

FRAUD FRAUD AND AND CORR CORRUPT UPTION ION ON ON UIF UIFW: UNA NAUTHO UTHORIS RISED, ED, IRREGU IRREGULAR, AR, FRUIT FRUITLE LESS SS & WA WAST STEF EFUL UL EXPENDITU NDITURE RE 1 2 3 4 CASE STUDY MR B WAS

  1. FRAUD FRAUD AND AND CORR CORRUPT UPTION ION ON ON UIF UIFW: UNA NAUTHO UTHORIS RISED, ED, IRREGU IRREGULAR, AR, FRUIT FRUITLE LESS SS & WA WAST STEF EFUL UL EXPENDITU NDITURE RE 1

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  5. CASE STUDY ➢ MR B WAS A SUPPORT MANAGER RESPONSBILE FOR MAINTENANCE OF 12 FACILTITIES OVER 12 REGIONS. ➢ EACH FACILITY WITH ITS OWN VOTE NUMBER. ➢ MR B WAS ASSISTED BY THE MAINTENANCE DIVISION IN APPOINTING CONTRACTORS TO PROVIDE MAINTENANCE WORK AT THE FACILITIES. ➢ SUMMARY OF FINDINGS: ➢ APPOINTED WIFE’S COMPANY ➢ APPOINTED A RELATIVE/ASSOCIATE ➢ COVER QUOTATIONS ➢ RANDOM USE OF VOTES ➢ SERVICES NOT PROVIDED ➢ MIRRORED TRANSACTIONS 5

  6. DEFINITIONS IRREGULAR EXPENDITURE: ➢ THE MFMA NOT FOLLOWED ➢ THE SCM NOT FOLLOWED ➢ CONTRAVENTION OF THE PUBLIC OFFICE-BEARERS ACT UNAUTHORISED EXPENDITURE: ➢ OVERSPENDING ➢ SPENDING FROM A WRONG VOTE ➢ SPENDING FUNDS FOR A WRONG PURPOSE ➢ SPENDING FROM AN UNRELATED DEPARTMENT OR FUNCTIONAL AREA FRUITLESS AND WASTEFUL EXPENDITURE: ➢ MONEY WASTED WITH NO VALUE GAINED, UNNECESSARY EXPENDITURE 6

  7. REQUIREMENTS OF THE MFMA • IDENTIFY THE OFFICIAL(S) WHO CAUSED AND/OR AUTHORISED THE EXPENDITURE • WAS THIS A NEGLIGENT ACT OR DELIBERATE NON-COMPLIANCE ➢ THE SCM REQUIREMENT/PROCESS WAS KNOWN ➢ DID THE OFFICIAL STAND TO GAIN ➢ WAS THE CONTRACT ALLOWED TO CONTINUE OFFERING THE SERVICES ➢ PROJECT MANAGEMENT CHALLENGES • BASIS FOR RECOVERY ➢ FROM THE PERSON DEEMED LIABLE FOR THE EXPENDITURE ➢ NO VALUE FOR MONEY ➢ NO SERVICES RENDERED ➢ FRAUD AND/OR CORRUPTION COMMITTED • ACTION TAKEN AGAINST THE SERVICE PROVIDERS • REGISTER CRIMINAL CASE FOR FURTHER INVESTIGATION 7

  8. IRREGULAR EXPENDITURE , CAUSES • EXPIRED CONTRACTS WHICH ARE STILL ACTIVE • DEVIATION APPLICATIONS • “SINGLE SOURCE” SUPPLIERS • ADMINISTRATION AT THE SCM UNIT • NON-COMPLIANCE • NEGLIGENCE • CORRUPTION • FRAUD • PRESSURE • DELIVERY CHALLENGES • KPI TARGETS 8

  9. UNAUTHORISED EXPENDITURE, CAUSES • PIGGY-BACKING BY DEPARTMENTS • UNMONITORED OR UNCAPPED EXPENDITURE • FAILURE TO CONDUCT RECONCILIATIONS • FRAUD • CORRUPTION • KPI TARGETS 9

  10. FRUITLESS AND WASTEFUL EXPENDITURE, CAUSES • NEGLIGENCE • NON-COMPLIANCE • COLLUSION (CORRUPTION) • CONFLICT OF INTEREST (CORRUPTION) • FRAUD 10

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  14. THANK YOU 14

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