The auditor-general (AG) has found that poor financial controls, irregular expenditure and faulty procurement have directly affected workers’ retirement funds at the Greater North Transport (GNT) in Limpopo.This was revealed in a preliminary report by the AG, which was presented to the Limpopo provincial legislature in September.Pensioners who have since retired and are demanding their pension funds picketed and slept outside premier Phophi Ramathuba’s office for days last month.The SA Human Rights Commission (SAHRC) started a mediation process. GNT is accused of deducting pension contributions but not forwarding them to fund administrators.According to the Make It Happen Foundation, which is representing the workers, more than R500m in pension funds is unaccounted for.The report shows that GNT has been accumulating irregular expenditure across multiple financial cycles.The AG flagged irregular lease agreements entered into with third-party bus operators.The AG also noted that the entities’ irregular spending kept growing each year. The AG noted that the irregular spending of these entities increased each year. It was R528m for 2021/22, then R629m for 2022/23 and R651m for 2023/24. Now it is R673m for 2024/25.“This is a clear breach of the five pillars of procurement – equitable, fairness, cost-effectiveness, transparency and competitiveness. The main contributor here is simple: non-compliance with procurement laws and regulations,” the AG said.“The audit outcomes regressed from the prior year on financial statements, material findings on performance information and most compliance themes. The entity encountered a rise in significant internal control deficiencies identified, which contributed to material misstatements and ultimately influenced the current audit outcome.”The latest audit revealed a material irregularity amounting to R5,9m in relation to a contract for security that was not properly extended and managed according the legislation. “The entity incurred penalties as a result of non-adherence with the agreement that was entered into between Great North Transport SOC (LTD) and department of transport. The total penalties incurred are R5.9m as disclosed in the annual financial statements for the year ended 31 March 2023. This resulted in non-compliance,” read the report.The report said this was due to the introduction of a new system without proper training of staff.“This resulted in delays or non-capturing of transactions. This was due to the introduction of a new system without proper training for staff. “This resulted in delays or non-capture of transactions.”
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2025-12-11 12:43:22
