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Cape Town – The Media Development and Diversity Agency (MDDA) says its irregular expenditure in the 2016/17 year is due to changes in Treasury's prescribed procurement processes.
The MDDA incurred irregular expenditure of R6.7m in the 2016/17 financial year according to its annual report, News24 reported on Friday.
"This was mainly attributed to the application of changes in the National Treasury procurement process through introduction of the central supplier database," reads a presentation on the annual report sent to News24 by the agency on Monday.
"Risk management measures have been implemented to ensure a parallel process of supplier verification is implemented to strengthen compliance."
The presentation also points out that the MDDA didn't incur any fruitless and wasteful expenditure during the financial year.
During 2016/17 the MDDA successfully raised R72m from various sources, which is the highest level of revenue raised in one year in the history of the MDDA, the presentation reads.
30 findings against agency
The MDDA paid out more disbursements than it has in its history, which left it with a deficit of R12.9m out of its budget of just more than R72m. It had a surplus of R7m in the preceding year.
"[The] deficit is a result of improved disbursement to projects from prior years and is funded by accumulated surplus," the presentation reads.
The auditor-general had 30 findings against the MDDA's financial statements for 2016/17, which the agency ascribes to "the lack of stability in key managerial and supervisory positions".
The portfolio committee on communications will on Tuesday discuss the annual reports of the department of communications and the entities reporting to it, including the MDDA.
On Friday the committee will also deliberate on whether it should institute a parliamentary inquiry into the MDDA.
