The auditor-general (AG) has found that poor financial controls, irregular expenditure and faulty procurement have directly affected workers’ retirement funds at the Greater North Transport (GNT) in Limpopo. This was revealed in a preliminary report by the AG, which was presented to the Limpopo provincial legislature in September. Pensioners who have since retired and are demanding their pension funds picketed and slept outside premier Phophi Ramathuba’s office for days last month.
The SA Human Rights Commission (SAHRC) started a mediation process. According to the Make It Happen Foundation, which is representing the workers, more than R500m in pension funds is unaccounted for. The report shows that GNT has been accumulating irregular expenditure across multiple financial cycles.
The AG flagged irregular lease agreements entered into with third-party bus operators. The AG also noted that the entities’ irregular spending kept growing each year. It was R528m in 2021/22, R629m in 2022/23, R651m in 2023/24, and is now R673m in 2024/25.
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“This is a clear breach of the five pillars of procurement – equitable, fairness, cost-effectiveness, transparency and competitiveness. The main contributor here is simple: non-compliance with procurement laws and regulations,” the AG said. “The audit outcomes regressed from the prior year on financial statements, material findings on performance information and most compliance themes. The entity encountered a rise in significant internal control deficiencies identified, which contributed to material misstatements and ultimately influenced the current audit outcome.” The latest audit identified a material irregularity of R5.9m linked to a security contract that was improperly extended and not managed in line with legislation.
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