NEWS

Treasury To Investigate ANN7 Financial Misconduct Claims

The Gupta-owned television stationed alleged that Treasury is guilty of financial misconduct.

31/05/2017 08:59 SAST | Updated 31/05/2017 08:59 SAST
Rogan Ward / Reuters
South Africa's Finance Minister Malusi Gigaba speaks with journalists at the World Economic Forum on Africa 2017 meeting in Durban, South Africa, May 5, 2017. REUTERS/Rogan Ward

National Treasury will investigate allegations that one of its programmes, the Integrated Financial Management System, failed due to financial mismanagement, as "revealed" in an expose by ANN7, Fin24 reported on Wednesday.

Called "Big Expose: Treasury's fall from grace", the report by the Gupta-owned television station made claims that Treasury was guilty of 54 instances of financial misconduct in 70 months, and that no one had been held accountable.

The Integrated Financial Management System project was reportedly supposed to integrate all provincial government department's financial management processes, but that it had been found to be inadequate.

According to ANN7, in September 2015, a review into the system was conducted where it was found financial misconduct. The television station's panellists recommended that the then finance minister, Nhlanhla Nene, and his senior staff should have to repay government for the money spent on the system. Nene was fired as finance minister in December that year and replaced with ANC backbencher, Des Van Rooyen, who was replaced by Pravin Gordhan four days later.

On Tuesday, Treasury said it would look into the issues raised by ANN7.

"It is in the interest of clean governance and the fight against corruption that we closely examine any report that is brought to our attention that relates to any claims of irregularity," he said.