Irregular expenditure increases to R 11 billion

The lack of financial control in South Africa’s municipalities continues, according to the latest Auditor General report.

South African money

According to the AG’s report, a staggering increase of R 542 million in fruitless and wasteful expenditure by municipalities was recorded between 2011/12 and 2012/13.

Moreover, during the same period, “irregular and wasteful expenditure” increased to R 11,6 billion, up from R 6, 7 billion in 2011/12.

319 Audits were conducted of which only 22 municipalities and 8 municipal entities received clean audits.

No municipality in the Free State, North West, Eastern Cape and Limpopo received a single clean audit.

In the DA-run Western Cape Province, 11 municipalities were awarded clean audits; and the City of Cape Town was the only metro to receive a clean audit.

In fact, unauthorised expenditure in the City of Cape Town is at nil, compared to R 598 million and R 270 million in the ANC controlled Tshwane and Nelson Mandela Bay Metropolitan Municipalities respectively.

The DA led Midvaal municipality in Gauteng received unchanged unqualified audit outcomes over the past 6 years and not a single cent was spent on irregular and wasteful expenditure.

The report released by the Auditor General highlights that effective governance and strong leadership is needed to turn around local government.

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