Corrective measures have been implemented following a qualified report on the regulator's 2005 financials by the Auditor-General (AG) and a hearing before the Standing Committee on Public Accounts (Scopa), says the Independent Communications Authority of SA (ICASA).
ICASA recently appeared before the committee to explain the causes of its qualified audit.
Jubie Matlou, senior manager of communications for ICASA, says the organisation has implemented various measures to ensure compliance with the Public Finance Management Act (PFMA).
"The appearance of ICASA before Scopa came in the wake of the AG's qualified report on the ICASA 2005 annual report. The AG's findings were in relation to deficiencies in relation to the PFMA. Following the AG's report, corrective measures were implemented when ICASA reviewed its supply chain management policies. The new policies were approved by [ICASA's] council and are being implemented," he explains.
Additionally, Matlou says ICASA has filled several posts: "Vacant positions in the procurement unit had been filled to ensure the necessary processes are followed and implemented. The three positions are bid administrator, contracts administrator and supply chain manager."
'Wasteful expenditure'
Parliament's Scopa committee questioned ICASA extensively on the state of its procurement policies and supply chain management.
Democratic Alliance committee member Anchen Dreyer noted that in the year under review, R6.7 million had been incurred in "fruitless and wasteful expenditure". He asked if ICASA's council, led by chairman Paris Mashile, had scrutinised contracts before giving its approval.
ANC committee member Donald Gumede noted the AG's supply chain management report had identified irregularities in procurement and tender processes that were contrary to the PFMA and National Treasury regulations. It was additionally not possible to determine whether goods were procured in a transparent and cost-effective manner, he said.
Pursuing compliance
ICASA's 2006 financial year ends in March this year. Matlou says ICASA has paid due credence to the AG and Scopa committee and expects to be compliant with the relevant regulations.
"ICASA has been fully appraised and sensitised by the AG report, and later by our appearance before Scopa.
"ICASA believes the [reviewing of supply chain management processes and filling vacant posts] will go a long way in helping the authority to fulfil all the requirements of the PFMA, as well as treasury regulations.
"It should be noted that this is the first time ICASA received a qualified report from the AG, and appeared before Scopa," he says.
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