g-Fleet owed R218 million by Gauteng departments

By Adriana Randall MPL, DA Gauteng Spokesperson on Finance:

G-Fleet, an entity of the Gauteng Department of Roads and Transport, is owed more than R218 million for the first quarter of the 2015/16 financial year by 10 different government departments.

This was revealed during a finance portfolio committee meeting attended by Gauteng MEC for Roads and Transport, Ismail Vadi.

Worryingly, MEC Vadi – under whom g-Fleet is administered, was not aware of the debt owed to the entity by various government departments.

G-Fleet is one of the worst performing entities in the Gauteng Provincial Government (GPG), and has been plagued for years with poor audit outcomes by the Auditor-General.

Most recently, it received an adverse finding in the 2013/14 financial year.

The 10 entities and the outstanding amounts they owe g-Fleet are as follows:

  • Gauteng Department of Community Safety: R64,492 million;
  • Gauteng Department of Health: R21,721 million;
  • The Department of Home Affairs R53,443 million;
  • Gauteng Department of Infrastructure Development R16,220 million;
  • The Gauteng Department of Rural Development R12,292 million;
  • Gauteng Department of Education R12,691 million;
  • Gauteng Department of Housing R4,511 million;
  • South African National Defence Force (Project Lebaka) R5,641 million;
  • The National Prosecuting Authority R6,253 million; and
  • The Office of the Chief Justice R20,998 million.

While MEC Vadi has promised to address this matter urgently, it speaks to a greater problem within the GPG and the silo mentality adopted by departments.

While Gauteng Finance MEC Barbara Creecy has endeavoured to ensure that suppliers are paid with 30 days, the same cannot be said of inter-departmental transactions which equally damage the GPG’s finances.

Tighter controls need to be put in place to monitor debt and credit between departments and action must be taken against those who fail to make payments timeously.

The DA will continue to assist the GPG and provide workable solutions for a better run provincial administration.