Assessing the impact of irregular expenditure on service delivery in the North West Provincial Treasury department

Abstract

Good governance warrants that politico-economic and social goals are directed at a large consensus and that allocation of resources takes into consideration the disadvantage parts of society. The aim of this study was to explore the impact that irregular expenditure has on service delivery in the North West Provincial Treasury Department in South Africa. The study was informed by both the principal-agent theory and the stewardship theory. A qualitative research approach was employed utilising semi-structured interviews to collect primary data from research participants. Thematic analysis was carried out with the aid of the NVivo qualitative data analysis programme. The findings of the study revealed that the sources of risk that affect service delivery in the North West Provincial Treasury Department comprises of lack of capacity, lack of pre-emptive measures, law enforcement challenges, and poor organisational culture. In addition, the factors that affect service delivery in the North West Provincial Treasury Department include budget constraints, corruption, lack of political will, and poor leadership. Also, the two major impacts of irregular expenditure on service delivery in subordinate departments in the North West include poor service delivery, and strain on budget. Further, the measures that are in place to control irregular expenditure in the North West Provincial Treasury Department include consequence management, monitoring and evaluation, staff training, and strategic sourcing. And lastly, recommendations that can be made to control irregular expenditure in the North West Provincial Treasury Department include regularly monitor budgets and expenditures to enable early detection of any deviations; monitor compliance rates; follow proper supply chain practices; use early warning systems; ensure transparent and regular reporting on irregular expenditures; strengthen internal control and recover assets from affected employees; institute consequence management; maintain the pillars of public expenditure - fairness, equity, transparency, cost effectiveness and efficiency; subject bids to probity assessment; and engage communities.