Department of Water and Sanitation director-general Sean Phillips said of the 446 allegations the internal audit investigated, 326 were confirmed to be true, 120 were unfounded and 73 allegations were currently under investigation.
The Department of Water and Sanitation disclosed on Tuesday that its internal audit unit investigated a total of 446 allegations of financial misconduct over the past five years, between the 2019/20 and 2024/25 financial years.
Briefing the Standing Committee on Public Accounts, the department’s director-general Sean Phillips said the investigation confirmed 326 of the allegations while 120 were deemed unfounded and 73 were currently under investigation.
“Seven cases have not yet been investigated as they were received recently,” he said.
Phillips also said finalised cases were referred to the department’s employee relations unit to take disciplinary action against official who committed financial and other acts of misconduct, and SAPS and the Hawks for criminal investigation.
There were also cases referred to the department’s legal services for civil recovery in instances where the department suffered financial loss.
Phillips stated that for the 326 cases confirmed to be true, most of the disciplinary processes have been completed and the remainder was still in progress.
“The disciplinary processes resulted in various sanctions against the transgressors. These sanctions included dismissal, demotion, suspension without pay and written letters.”
He added that the internal audit has conducted 140 awareness sessions during the five year period and 4,307 officials were trained about anti-fraud and corruption measures.
Regarding the audit outcomes for 2024/25, Phillips said the department has implemented its financial recovery plan.
This saw the department move from near-bankruptcy in 2016/17 to a healthy financial state and moved from qualified audits to unqualified audits with findings.
“We are not satisfied with an unqualified audit with findings,” Phillips said.
He told Scopa that the problem of high under-expenditure on both the department’s budget and grants has been addressed.
The department is now achieving over 99% expenditure in its budget and grants.
This was ascribed to strengthened controls, and reducing irregular and unauthorised expenditure compared to the 2017/18 period.
Phillips said improving the implementation and monitoring of the department and municipal grant-funded projects was the key area requiring further improvement to achieve clean audit.
“Department of Water and Sanitation is engaged in the required process to regularise past irregular and unauthorised expenditure through taking disciplinary action, implementing improved controls and approaching the National Treasury for condonation.”
However, Phillips noted that the Auditor-General issued nine material irregularities in the 2024/25.
“Three of these material irregularities have been resolved while six are still in progress.”
Phillips said they were taking disciplinary action against the implicated officials, recovering funds in instance where financial loss has been suffered and improving procurement and contract management processes.
Quizzed by ANC MP Helen Neale-May about guaranteeing that financial statements were prepared adequately, Minister Pemmy Majodina confirmed that the Auditor-General raised concerns in terms of full compliance.
*This article was first published by IOL News
