G-Fleet: Poor audit outcome indicative of weak leadership

By Dr Neil Campbell MPL, DA Gauteng Shadow MEC for Roads and Transport:

G-Fleet, an entity of the Gauteng Department of Roads and Transport, received a disclaimer from the Auditor General (AG) for the 2014/15 financial year, as the Chief Executive Officer and Chief Financial Officer were both found not to have provided effective leadership.

G-Fleet provides rental cars to both provincial and national government departments, including VIPs.

This entity is the worst performing of the entire Gauteng Provincial Government.

Despite ongoing instructions over several years from both the Portfolio Committee on Roads and Transport and the Standing Committee on Public Accounts (SCOPA) to improve their systems and credit control – the audit picture that emerges is one of loss of both financial and political control.

At the end of the 2015 financial year, R228 million was still owed to the entity. Of this, R157 million is owed by provincial departments and R71 million is owed by national government.

Government departments need to be more punctual with their payments and g-Fleet itself needs to tighten up its credit control.

G-Fleet has the mechanism to reduce this debt by suspending fuel cards, but despite promises to the portfolio committee that this would happen, the entity has not utilised this management tool.

The MEC and HOD of the Department of Roads and Transport must bear responsibility for this disastrous financial result as they have both been fully aware of these problems.