The KZN Provincial Treasury has said, in a letter, that the Provincial Accountant-General (PAG) is permanently placed within the Department of Education with full authority to oversee all financial administration functions.
The financial situation of the KwaZulu-Natal Department of Education has worsened, with the Provincial Treasury “taking over” the department’s financial affairs due to ongoing governance failures.
Carol Coetzee, the Head of Provincial Treasury, wrote to the department this month, informing it that the Treasury has imposed “enhanced intervention measures.” This suggests that the previous intervention was not successful.
The letter from Coetzee suggests a complete takeover of the department’s finances by the Treasury. The letter stated that the Provincial Accountant-General (PAG) has been permanently placed within the Department of Education with full authority to oversee all financial administration functions. The PAG has the authority to demand any financial information from department officials, and failure to comply will lead to disciplinary action.
The Treasury Head of Department (HOD) detailed the motivation for the intervention: “I write to you in terms of Section 18(2) of the Public Finance Management Act, Act No. 1 of 1999 (PFMA), to formally communicate the implementation of enhanced intervention measures in the Department of Education following a comprehensive assessment of the financial governance failures within your department.” The letter revealed that the enhanced Section 18 intervention has been necessitated by a complete breakdown of financial governance, control systems, and procurement integrity within the department.
