The Auditor-General (AG) has found that several reported achievements by the Gauteng Shared Services Centre (GSSC) were inaccurate, with no evidence to back up the claims of success.
“Thirty-five percent of the selected reported targets were not accurate on the basis of the source information or evidence provided to support the reported performance objectives,” said the AG in a performance review of the agency.
The GSSC was issued an unqualified audit report by the AG. "GSSC has shown resilience with the last three unqualified audit reports by the auditor-general," said finance MEC Mandla Nkomfe at the tabling of the report.
However, the Democratic Alliance (DA) has highlighted some problem areas.
Prove it
Speaking at the Gauteng Provincial Legislature, DA spokesperson for finance in Gauteng Mike Moriarty said the performance review drew findings that were less than favourable.
He highlighted the above statement made by the AG and explained that the GSSC claims to have met various objectives, but - when challenged to back up those claims with evidence - a “third of the time” it could not do so.
“This is alarming, as it means that whatever we are told regarding successes, we are left with some doubt as to whether this is the truth.”
Output versus outcome
“We have spent over R2.5 billion on Gauteng Online and we have to ask ourselves what have we got to show for it,” said Moriarty.
The Gauteng Online schools project is a provincial initiative to build a province-wide school computer network. The project aimed to create 25-seat computer labs with Internet and e-mail capabilities at public schools in the province, to be used for curriculum delivery. Approximately 2 025 schools were to be connected by May.
DA Gauteng education spokesperson Khume Ramulifho previously said Gauteng Online is off-line, despite reports that it is up and running. “When I visited schools, many of them complained that this initiative was just a waste of resources.”
“The problem is that, from a GSSC point of view, 'completed' means there is an iLab installed and there is a working connection. It does not mean that learners are using the system, or that an improvement has been achieved in the quality of the learning experience,” said Moriarty.
The GSSC had not responded to ITWeb on the matter at the time of publication.
Cost cutting
Moriarty also noted the problem of unauthorised expenditure to the value of R2.35 million worth of generators for schools and clinics.
However, Nkomfe, speaking of the GSSC's integration into the provincial finance department, said he is pleased with the performance during the previous financial year.
“These results were achieved during the transition, which is always a challenging period in any organisation.”
He said National Treasury spearheaded a comprehensive reprioritisation process last year, in response to the challenges of the global economic downturn, which involved shifting limited financial resources from non-core to core functions, says the Government Communication and Information System (GCIS).
A cost-saving exercise was undertaken at the same time, where the department reviewed and renegotiated, or cancelled, those contracts that were not providing value for money, or were not in line with priorities, added Nkomfe.
He added that, during the period under review, the GSSC processed and awarded 80 tenders with a total value of R2.2 billion, and the improvement of contract management processes led to cost savings. This included a 24% saving on cellular services and 16% on assets.
No accountability
Through the forensic audit unit, Moriarty said, it is now possible to see the performance of the GSSC in respect of combating fraud and corruption, in full isolation. “And the result is awful.”
The DA spokesperson said the unit missed the target of forensic investigation reports by 23%. Only three out of 25 targeted fraud detection reviews were done and only nine out of the 25 targeted fraud risk assessment reviews were done.
“The reasons given include an inability to procure some piece of software and the non-availability of representatives from the client departments.”
However, Nkomfe said the Gauteng Audit Services, a unit that provides a full spectrum of internal audit services to all provincial government departments and agencies, completed 126 audits against a target of 124 during the period under review.
Moriarty also mentioned the failure by the GSSC to open a job centre in Soweto's Maponya Mall, due to a lack of “computer infrastructure” and the recent situation with the call centre for drivers' licence bookings.
He noted that the Sibize contract for the call centre was terminated at a cost of R90 million, allegedly without a tender having ever gone out.
The GSSC has come under fire several times in the past and has been slammed for its failure to deliver several key projects. It was this year reincorporated into the Gauteng finance department, following financial concerns.
This was primarily because of its long list of financial troubles, including a payment backlog of R1.7 billion - money which it owed to hundreds of suppliers to public hospitals and schools.
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