The Roads Agency Limpopo has over R8 billion in irregular expenditure, prompting calls for urgent action from officials.
The Roads Agency Limpopo (RAL) has incurred irregular expenditure of more than R8 billion, with the DA calling on MEC for public works Tonny Rachoene for urgent action.
The entity is responsible for the construction of roads in Limpopo and there are currently 12 500km of unpaved roads.
The irregular expenditure is an increase from R6.8 billion in 2023-24 financial year to R8.6 billion this year.
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Investigations into irregular expenditure
Rachoene confirmed there were a string of investigations going on in RAL to quantify the amount of irregular spending from over two years ago.
The main contributors for the agency’s dismal performance, according to the office of the auditor-general (AG), is irregular appointment of service providers as there was no clear criteria for appointments, supply chain management policies not followed during the appointment of service providers and service providers appointed without budget, among many other problems.
DA Limpopo spokesperson for public works, roads and infrastructure Marie Helm said RAL seemingly established a contractor panel, where a small pool of prequalified contractors were approved to take on road capital projects.
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Roads Agency Limpopo spends R1.6bn on contractors irregularily
“The panel is not in accordance with the supply chain management legislation in the Public Finance Management Act.
“During one year, RAL incurred R1.6 billion in irregular expenditure due to appointing contractors through this panel of prequalified contractors,” said Helm.
She said RAL used the very same select list of contractors, wherein there was no clear criteria for appointment of service providers from the panel.
In August, Rachoene dissolved the RAL board, owing it to several transgressions that left the entity bankrupt and failing to deliver on its legislative obligations.
RAL spokesperson Danny Legodi said the entity was supporting the interventions initiated by Rachoene.
“The challenges faced by the entity, including irregular expenditure and overcommitment have been identified and receiving attention,” he said.
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