MK Party Plans to File Fraud Charges Against National Treasury

The uMkhonto weSizwe (MK) Party announced that it will file fraud and corruption charges against the National Treasury at the Brooklyn police station in Tshwane on Monday, 21 October.

This concerns the allegedly irregularly awarded R400 million Integrated Financial Management System (IFMS) tender.

WHY DOES THE MK PARTY WANT TO OPEN A CASE AGAINST THE NATIONAL TREASURY? 

According to reports, the Auditor-General flagged the IFMS project, which cost the National Treasury R400 million. 

This stemmed from a probe by the Special Investigating Unit (SIU), which reportedly found that the contract was irregularly awarded and that there was non-compliance with legislation, among other issues. 

Meanwhile, Economic Freedom Fighters (EFF) has confirmed that its leader Julius Malema has written to President Cyril Ramaphosa urging him to release the SIU report, which was submitted to him in March 2024. 

The party said the irregularities flagged by the SIU make it imperative for the public to be informed of the findings. 

“Withholding this report undermines transparency, accountability, and the principles enshrined in our Constitution, demanding that the National Treasury responsibly manage public funds. 

“The EFF views the failure to release the report as protection of corruption and a betrayal of public trust,” the Red Berets said.

ENTITIES FAIL TO ACHIEVE A CLEAN AUDIT 

Meanwhile, ActionSA said that it would write to the chairperson of the Standing Committee on Finance, Dr. Mkhacani Maswanganyi, to urgently summon the nearly 40% of National Treasury entities (six out of 16) that failed to achieve clean audit reports to appear and account before the Committee.

The party said it is concerned about the poor audit outcomes of entities reporting to the National Treasury. Given that the National Treasury is the custodian of good governance, it is unacceptable that so many of its entities failed to achieve clean audit reports.

“Alarmingly, the entities that failed to secure clean audits include the Public Investment Corporation (PIC), Financial and Fiscal Commission, Government Pension Administration Agency, Land Bank, Land Bank Insurance Company, and Land Bank Life Insurance Company.

“Of particular concern is the PIC’s repeated failure to obtain a clean audit. With over R3 trillion in funds under management, including the Government Employee Pension Fund, it is shocking and unacceptable that an entity of this magnitude cannot ensure proper financial management and accountability,” ActionSA member of Parliament Alan Beesly said. 

Notably, the PIC remains one of the entities whose audit findings have not improved from previous years. The Auditor-General also noted that “the entity continues to struggle with compliance with legislation, as prior year action plans failed to address significant internal control deficiencies adequately”. 

Beesly said that, beyond the poor audit outcomes, ActionSA is further concerned by the Auditor-General’s indication of the persistent failure of various entities to achieve their performance targets. The National Treasury met only 79% of its targets, while the PIC achieved just 64% of its planned targets.