Local Govt pursues P30m poverty eradication refund from OP
Gothataone Moeng | Friday May 30, 2014 16:59
Reporting before the Public Accounts Committee (PAC), Permanent Secretary, Boipelelo Khumomatlhare, said he was pursuing P30.4 million that his ministry had spent on poverty eradication projects. As the department in charge of the flagship government programme, the OP holds all funds expected to be used in poverty eradication initiatives and issues Letters of Authority to various implementing partners, such as the MLGRD, to use the funds when needed.
However, it was revealed on Wednesday that for the last two years, the Local Government ministry has been spending its own money from a “Below-the-Line” account.
It further emerged that the Below-the-Line account is one that the ministry is not supposed to spend money from, meaning therefore that the ministry spent money it did not have. In the 2012/2013 financial year, the ministry spent P11.2 million, while in the last financial year it spent P19.2 million from its Below-the-Line account on initiatives in the poverty programme. Explaining the origin of the misunderstanding, Khumomatlhare, through one of his officers, explained that in 2011/2012 when the poverty eradication initiative started, the ministry was expected to use money from the Below-the-Line account. “The problem started when OP started giving us Letters of Authority to use money from their account,” the officer explained.
“When we got the Letters of Authority, our accountants continued debiting our account. Even when we had shown them the letters, they continued debiting the Below-the-Line account.” PAC chairman, Nehemiah Modubule, expressed concern with the trends in the ministry’s spending. “Accounting officer, I am worried. Nobody is going to account for this money. Where is it going to come from? This is unauthorised expenditure,” he charged. Adding his voice to the chorus of concern, Palapye MP, Moiseraele Goya said he was worried that the ministry’s explanation revealed improper accounting. “Is this proper accounting? The OP caused you to make a mistake last year, but the problem has not been solved, you have now spent even more money,” he said. Khumomatlhare explained that the ministry is now facing an uphill battle in its efforts to recover the funds from the OP. He explained that a letter he wrote to the OP asking for funds to offset the P30.4 million, had not been responded to by the time of his appearance at the PAC. The permanent secretary said this is despite the fact that the OP is, on an annual basis, given funds for its poverty eradication programmes. Khumomatlhare also promised to deal with the accounting officers who got him into the mess. “I have been handling this matter internally. On this one, Chair, I promise I am going to take action,” he said, to which Modubule reminded him to take the matter seriously, adding that merely cautioning his officers would not be enough.