The Auditor-General has reported that supply chain management regulations have not been strictly adhered to at the South African Revenue Service (SARS). This came out in the entity’s 2020/21 annual report tabled in Parliament.
The entity reported revenue collection of R1.249 trillion during the year under review.
SARS Commissioner Edward Kieswetter presents the preliminary outcomes of revenue collected from April 2020 to March 2021
The AG says not strictly adhering to supply chain management has led to the re-occurrence of irregular expenditure. It includes services provided to the entity without valid contracts, improper contract management, and inadequate understanding of procurement legislation.
According to the AG, SARS management has undertaken to investigate these matters to ensure there is no substantial risk to the entity.
In another instance, the entity’s resources weren’t used economically as the goods obtained weren’t used for the intended purpose. It led to legal action to settle with the contractor due to poor performance and to get a new contractor on board.
This has led to a delay in the project and related expired goods.
