AN agency tasked with managing government buildings has failed to account for its reckless spending of more than R2.6-billion of public funds during the last financial year.
Auditor-general Terence Nombembe has slapped the financial books of the Property Management Trading Entity (PMTE) – which manages buildings on behalf of the Department of Public Works – with a disclaimer after it failed to account for irregular expenditure of R2.6-billion.
This means that the AG could not properly audit the PMTE because documents to support their spending for the financial year under review either do not exist or are in a complete shambles.
"I was unable to obtain sufficient appropriate audit evidence for irregular expenditure as the entity did not have an adequate system for identifying and recognising all irregular expenditure.
"I was unable to confirm the irregular expenditure amount by alternative means," Nombembe said in his damning report.
This is contained in the annual report of the Department of Public Works, tabled in parliament yesterday by Minister Thulas Nxesi. The AG also found that the PMTE had incurred fruitless and wasteful expenditure of more than R254-million.
The agency could also not properly account for revenue generated from leaseholds worth billions of rands.
Turning to the financial records of the department, the AG found that Public Works could not adequately account for R664-million splurged on renovating government buildings.