Leadership instability blamed for military veterans department's failure to table annual report

Instability at a senior management level within the department of military veterans has delayed the tabling of its annual report in parliament.

Defence and military veterans minister Thandi Modise told National Assembly speaker Nosiviwe Mapisa-Nqakula that due to the instability and lack of an audit committee, she had given the department approval to delay the submission of its draft annual financial statements and annual performance report to the auditor-general and the National Treasury by two months.

In terms of the Public Finance Management Act (PFMA), ministers have to submit annual reports and audited financial statements to parliament no later than six months after the end of the financial year — which in the case of government departments and state-owned entities is September 30.

Modise said the department will only be able to do so by October 31.

The department has been without a permanent director-general since Irene Mpolweni was placed on suspension in March.

Meanwhile, the EFF and DA have condemned the failure of a number of government departments and state-owned enterprises to meet the deadline for tabling annual reports.

“It is a clear demonstration of incompetence, mismanagement, and a lack of accountability within these entities at the behest of Pravin Gordhan as the minister of public enterprises, which ultimately results in a lack of transparency and undermines public trust,” said the EFF this week.

Eskom, SAA, Denel and Alexkor are the public enterprises entities that have not tabled their financial statements. The Unemployment Insurance Fund, Compensation Fund and National Student Financial Aid Scheme (NSFAS) have also missed the deadline.

The EFF said it was concerning that Eskom, a critical state-owned entity responsible for the country’s power supply, has failed to finalise its accounts on time.

“The admission that there are questions raised by the auditor-general and that the PFMA audit has not been completed is a clear indication of mismanagement within the organisation.

“The fact that Eskom has not submitted its financial statements, while there are still lingering allegations of criminal cartels controlling procurement within Eskom, is a cause for concern,” said the party.

The DA said the annual reports were an essential aspect of government transparency and accountability, providing critical insights into the financial health, performance, and governance of departments and entities.

“These reports are not only a legal obligation but also a fundamental tool for evaluating the effectiveness of government programmes and spending,” said DA deputy chief whip Annelie Lotriet.

The failure to submit the reports reflected the ANC government’s contempt for parliament, creating a concerning pattern of disregard for legal requirements and a lack of transparency, she said.

“This failure directly impacts the ability of parliament and the public to assess government performance and hold officials accountable for their actions.”

The continued disregard for these deadlines undermines the principles of good governance and weakens public trust in government institutions, said Lotriet.

She said the DA will lay charges in terms of the PFMA against the accounting officers for failing to table the reports on time. The party will also request that the AG issue a special report on entities that have failed to submit their annual reports.

TimesLIVE