Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

Office equipment rental – Incorrect SCM procedures followed in the renewal of contract was reported incorrect during the previous financial year for the amount of R11,123,729.65 The department had sourced the contract direct with the service provider. Details of disciplinary or criminal steps taken as a result of irregular expenditure Disciplinary steps taken The Accounting Officer issued representation letters to five (5) officials for failure to prevent irregular expenditure within their area of responsibility.

The Accounting Officer was satisfied with the reasons furnished by the individuals 1.2 Fruitless and wasteful expenditure Reconciliation of fruitless and wasteful expenditure Description 2023/2024

2022/2023

R’000 6,765

R’000 6,765

Opening balance

Adjustment to opening balance Opening balance as restated Add: Fruitless and wasteful expenditure confirmed Less: Fruitless and wasteful expenditure recoverable 4 Less: Fruitless and wasteful expenditure not recoverable and written off

-6,765

Closing balance

-

6,765

A Legal opinion was sought from State Attorney to verify the correctness of the outcome from the investigation report. The opinion concluded that the expenditure paid was justified Reconciling notes Description 2023/2024 2022/2023 R’000 R’000 Fruitless and wasteful expenditure that was under assessment

Fruitless and wasteful expenditure that relates to the prior year and identified in the current year Fruitless and wasteful expenditure for the current year - Total -

6,765

6,765

4

Transfer to receivables

183