the department’s internal audit and compliance unit conducted a random audit at Tembisa Provincial Tertiary Hospital and recommended that control measures be strengthened.

Responding to a legislature question on the matter MEC Mokgethi today stated that the random audit was sanctioned by the Chief Financial Officer in August 2021 as part of efforts to ensure that the facility adheres to supply chain management (SCM) and financial management policies.

“The aim of the random audit was to advise on best practices on how to improve financial management performance and also to ensure that the hospital gets value for money when procuring goods and services,” explained the MEC.

The scope of the random audit covered a number of areas which among others:

• Testing whether procurement was made using Central Supplier Database systems;

• Orders are placed in line with supply chain management procurement delegations;

• Delivery notes are aligned to resources procured, random checks on procured goods and services;

• Checking whether there was no irregular expenditure, overspending on goods and services, and payments done within 30 days;

• Checking whether the institution has a demand plan and goods are procured in line with that plan; and

• Whether the relevant committees such at the quotation adjudication committee are in place. 

  Recommendation were made following the internal audit process with an aim to improve business operations and address shortfalls. Some of the findings that were made include:

  • Management should improve the effectiveness of internal controls over Supply Chain Management (SCM) processes to ensure compliance with SCM prescripts and applicable legislation.

  • Management should design and implement a compliance checklist to ensure compliance with laws and regulations

  • The accounting officer should implement consequence management for officials who contravened the laws and regulations

    The audit report was shared with the CEO and management of Tembisa Hospital for the entity to act on it. The recommendations align with the Gauteng Audit Services report that was included in an audit action plan. The facility has since put in place a mitigation plan which included:

  • Appointing a Bid Adjudicating committee

  • SCM to have a Demand Management section.

  • The Supply Chain Manager to ensure that the Demand plan is used to

  • monitor compliance with regulation to get value for money

  • Using the Demand plan to monitor budget and expenditure of the institution.

  • The institution to prioritise services and to avoid over expenditure, irregular and

    fruitless and wasteful expenditure.

  • Clearing backlogs – to stabilize services.

  • Continue with on-going Audits that are conducted to correct any gaps

  • Focusing on boosting staff morale

  • Appointing additional human resourced

    It should be noted that the Department’s internal controls measures were not a forensic audit and as such it is important to allow the Special Investigating Unit, which has since been appointed by the Gauteng Provincial Government to conduct a forensic investigation into procurement at the Tembisa Provincial Tertiary Hospital to conclude its work in this regard.

    Ends

    Issued by Gauteng Department of Health

    For more information, Motalatale Modiba, Head of Communication on 064 803 0808 or mediaenquiries@gauteng.gov.za

    For media releases, speeches and news visit the Gauteng Department of Health’s portal at www.gauteng.gov.za