The communication regulator's failure to curb fruitless and wasteful expenditure, missed targets and under-spending have again drawn the ire of Parliamentary Portfolio Committee members, who accuse the authority of lagging behind other African authorities.
The Independent Communications Authority of SA (ICASA) recently presented its annual report to the communications committee. ICASA, which has previously pleaded for more funding to do its job, said only 85% of its budget was spent.
In addition, 67% of its 42 targets were not met in the financial year under discussion. This includes aspects such as improving operational efficiency, providing greater access to mobile spectrum, and increased connectivity for South Africans.
Moreover, the auditor-general found no effective steps had been taken to prevent irregular, fruitless and wasteful expenditure, which grew during the year as problems with previous periods were found in 2012/13.
Chairman Stephen Mncube told the meeting there was much ICASA was doing, but it was experiencing many challenges as it tried to interweave policy and regulation.
Falling behind
The regulator's failure to meet the bulk of its targets, as well as its under-spending, drew heavy criticism from committee members.
Congress of the People member of Parliament Juli Kilian said while there were improvements in some areas, ICASA was still not doing its job, especially when compared to other countries on the continent. She said the only way SA could lead Africa was by example.
Kilian questioned whether the regulator could have an impact when it was only hitting a third of its targets. Even Rwanda's telecommunications sector was doing better without an independent authority, she argued.
The targets ICASA had missed were the most critical, the Democratic Alliance's (DA) shadow minister of communications, Marian Shinn, pointed out. She also questioned why ICASA was battling to get the people it needed.
Shinn's statement was echoed by DA member Aaron Steyn, who said ICASA was going backwards, as it kept rolling targets over from one year to the next. African National Congress member Rosalia Morutoa noted that while ICASA was working hard, everything seemed to be "in the pipeline" when it came to meeting targets.
Outgoing CEO Themba Dlamini, who will be replaced by Pakamile Pongwana on Friday, explained some of the missed targets, such as regulations on ownership and control, as well as the National Frequency Plan, had rolled over into the current financial year and were now complete.
In other instances, reports had been finalised and were ready for approval, while communications minister Yunus Carrim had to give approval for some projects, said Dlamini. He added that some tasks, such as the skills audit, had been pushed out to next year.
Carrim said last month that the Department of Communications had developed a performance management tool to assess ICASA's performance every six months.
Spending hurdles
Dlamini said ICASA did not spend R63.4 million of its R411 million budget. This amount related to an "allocation" for ring-fenced projects linked to buying broadband equipment and systems development software.
Capital expenditure was 71% less than budgeted for because of challenges in relocating ICASA's head office, and issuing procuring postal services equipment, said Dlamini. ICASA saved R2 million after cutting down on unnecessary consumables, he added.
Steyn questioned ICASA's leadership, because its report showed money was wasted on storing vehicles externally, when space was available internally. He queried why the underspent money could not be moved to more urgent areas, such as on its technical and computer equipment.
Some 70% of ICASA's technical equipment, and 30% of its computer equipment, was in a poor state, said Steyn.
The AG found fruitless and wasteful spending grew from R189 292 to R3.7 million, of which R2.8 million goes back a few years, but was only found in the year under review. Of the R4.2 million in irregular spending - up from R538 433 - R1.3 million had only just been found.
Kilian tackled ICASA over the apparent increase in fruitless and wasteful expenditure. However, most of this amount was due to issues stemming from the last financial year, which still had to be resolved.
Dlamini said ICASA was taking corrective measures, which included handing over some of the responsible people to the audit and risk committee. He added the supply chain manager, suspended on allegations of potential fraudulent misconduct, quit before the disciplinary hearing.
Once the process was wrapped up, ICASA would provide the committee with a progress report. ICASA received an unqualified audit from the auditor-general, although that office drew attention to certain matters.
ICASA did not respond to a request for comment this morning.
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