Development funds have been robbed
The National Development Agency (NDA), which has been linked to misappropriation of funds, was undergoing change and vigilantly ensuring that corporate governance was adhered to, it said.
The agency said it had appointed a strong director of internal audit.
The NDA is allocated R100 million annually by the department of social development to make grants to civil society organisations to meet the developmental needs of poor communities.
In the annual report for 2005/06, published yesterday, the new chief executive, Godfrey Mokate, said the year represented the period of transformation for the organisation following a few years of turbulence and the lack of a chief executive until June last year.
"At the beginning of the year, the organisation faced a number of challenges which affected its ability to meet its mandate effectively," said Mokate.
Former chief executive Delani Mthembu resigned ahead of a disciplinary hearing over corruption and mismanagement of funds.
The auditor-general has given the NDA a qualified report, saying that during the audit of the agency reconciliations and testing of payments subsequent to its year-end, it was found that a material amount was misappropriated.
Sapa reports that R8.8 million was misappropriated from the NDA, according to a recent forensic audit.
Mthembu's resignation came after social development minister Zola Skweyiya suspended him, following the preliminary results of the audit.
Mokate said the agency had embarked on a transformation process that had enabled it to implement a new strategy aimed at ensuring that it continued to deliver. "This is a process that has only begun and will see the turnaround… over a period of time."
The annual report said the NDA board had approved funding for a total of 104 projects throughout the country, amounting to about R68.7 million, during 2005/06.
These would benefit 40 000 people directly and an estimated 156 000 indirectly.
A further 64 projects worth R43.6 million were approved through the programme formulation process, affecting 30 000 people directly and 122 000 indirectly.
Skweyiya said in the report: "My overwhelming sense is that the necessary institutional stability and effective governance to enable the NDA to deliver on its legislative mandate have been created. In addition, the role which the board has played… has had a very positive impact on the governance of and service delivery by the NDA." Read more
The agency said it had appointed a strong director of internal audit.
The NDA is allocated R100 million annually by the department of social development to make grants to civil society organisations to meet the developmental needs of poor communities.
In the annual report for 2005/06, published yesterday, the new chief executive, Godfrey Mokate, said the year represented the period of transformation for the organisation following a few years of turbulence and the lack of a chief executive until June last year.
"At the beginning of the year, the organisation faced a number of challenges which affected its ability to meet its mandate effectively," said Mokate.
Former chief executive Delani Mthembu resigned ahead of a disciplinary hearing over corruption and mismanagement of funds.
The auditor-general has given the NDA a qualified report, saying that during the audit of the agency reconciliations and testing of payments subsequent to its year-end, it was found that a material amount was misappropriated.
Sapa reports that R8.8 million was misappropriated from the NDA, according to a recent forensic audit.
Mthembu's resignation came after social development minister Zola Skweyiya suspended him, following the preliminary results of the audit.
Mokate said the agency had embarked on a transformation process that had enabled it to implement a new strategy aimed at ensuring that it continued to deliver. "This is a process that has only begun and will see the turnaround… over a period of time."
The annual report said the NDA board had approved funding for a total of 104 projects throughout the country, amounting to about R68.7 million, during 2005/06.
These would benefit 40 000 people directly and an estimated 156 000 indirectly.
A further 64 projects worth R43.6 million were approved through the programme formulation process, affecting 30 000 people directly and 122 000 indirectly.
Skweyiya said in the report: "My overwhelming sense is that the necessary institutional stability and effective governance to enable the NDA to deliver on its legislative mandate have been created. In addition, the role which the board has played… has had a very positive impact on the governance of and service delivery by the NDA." Read more
posted by Jopie Fourie at 11:16 PM
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