Senzo Mchunu determined to steer his department to calm waters

Senzo Mchunu says when he became water and sanitation minister in August 2021 he inherited a department riddled with vacancies and millions in unauthorised, irregular and fruitless and wasteful expenditure.

This, he said, was something he and his team were determined to turn around.

Mchunu and senior department officials on Wednesday briefed parliament’s standing committee on public accounts (Scopa) on its audit outcomes for the 2020/21 financial year and the Special Investigating Unit’s (SIU) probe into the department.

He said a number of critical short- and long-term interventions had been implemented, including filling of posts to eliminate “accounting gaps”.

“We filled the position of the director-general with effect from January this year. There were four deputy director-general posts that were vacant — DDG for corporate services; DDG chief finance officer; DDG regulation, enforcement and compliance; and DDG water and sanitation have all been filled.

“All seven vacant DDG posts (that we found) are now filled, barring one, the DDG of infrastructure, whose case is dragging on and on. We have tried everything we can to ensure it does not drag further, but there are legal and technical matters we couldn’t cut off.

“Ninety-nine percent of the case has been dealt with procedurally. We just have to wait for the completion thereof. That’s the only post we have vacant.”

He said eight chief director posts that were vacant when he arrived had also been filled.

“Ten director posts that were vacant have been filled. Other than that, three vacant posts that had been left by senior managers who were promoted to higher positions are now in the process of being filled.

“One director post that was vacated by the CFO will be filled from October 1. One vacant director post of forensic investigation and quality assurance and one director post vacated by the current Western Cape provincial leader are also being filled.”

The department had also approved an organigram which was a concern to some in the department. “We’ve had to sit down with labour to make sure the structure is in accordance with repositioning, as dictated by strategic planning.”

Mchunu said he was aware that filling posts didn't automatically mean a strong department.

“You need to go into all the systems of the department, from procurement. We realised that the recurring improper accounting issues flowed from weaknesses in the system we found there.”

Mchunu said he had told his DG to pay close attention to procurement, human resources and internal matters, including construction.

“[With] some of these issues we are dealing with Treasury because it’s clear to us that procuring pens and paper is not the same as procuring for a R24bn project. We have raised the matter and cabinet is dealing with [it], so there is a way to fast-track the delivery of projects.”

Mchunu said by March 2021 there was R641m in unauthorised expenditure.

“There was irregular expenditure of R18bn from the main and trading accounts. Fruitless and wasteful expenditure amounted to R287m, with the main account at R64m and the trading account at R223m.

“It’s very ugly and this improper expenditure was incurred over a number of years before we arrived in August 2021. [It was] reported to Scopa in March 2021.”

Mchunu said he had brought interventions aimed at ending this.

“We are using condonations where appropriate, exit strategies and cancellations of some of the contracts, where feasible, and we are yielding some positive results. [We want] to see a decline in all improper expenditure.”

By March this year the balances were R641m on unauthorised expenditure, R16.5m on irregular expenditure and R223m on fruitless and wasteful expenditure on both accounts.

“These issues [cannot be dealt with overnight] because [of recurrence over the years], without drastic steps being taken to bring an end to this kind of reporting to parliament.

On matters under investigation internally by SAPS or the SIU, Mchunu said during late minister Edna Molewa’s tenure a number of cases were registered.

“Between 2009 and 2014 28 cases were registered for investigation. Of that 27 were of a financial nature. [At the time, one case was pending].

“The person leading the department at an executive level was an acting director-general. From 2014 until 2018 he was still acting. [We were in an era of] letting people act for an unreasonably long time, [the reasons for which are] beyond our understanding.”

While a DDG was eventually appointed, Mchunu said during that period 72 cases were registered for investigation. “Out of 72 cases, 64 were finalised and eight are outstanding.”

Scopa chair Mkhuleko Hlengwa said the water and sanitation department had been on the committee’s radar for some time. “The magnitude and the complexity of the water matters require our attention and we are aware of the presidential proclamation on granting the SIU the opportunity to investigate.”

Hlengwa said parliament, however, still needed to conclude its process.

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