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R 46 billion in Irregular Expenditure

The Auditor General has revealed that R 46 billion in irregular expenditure was uncovered during the 2015/16 financial year.

The Western Cape was the best performing province in the 2015/16 financial year, Auditor General Kimi Makwetu has said.

However, R 46 billion of irregular expenditure across all government departments and entities for the year under review, was uncovered.

The irregular expenditure for each province was:

North West – R 2.9 billion
Northern Cape – R 1.7 billion
Mpumalanga – R 4 billion
Limpopo R 1 billion
KwaZulu-Natal – R 3.5 billion
Gauteng – R 6.5 billion
Free State – R 1.9 billion
Eastern Cape – R 1.24 billion
Western Cape – R 28 million

Makwetu cited the continued non-compliance with supply chain management legislation as the main reason for the increase.

Irregular expenditure represents expenditure incurred towards procurement of goods and services without following prescribed processes.

The AG’s latest report covers a total of 484 auditees, which include 169 national and provincial departments and 315 public entities with a total budget of R 1.2 trillion for the year under review.

The AG noted that six auditees were responsible for just over 50% of the irregular expenditure in 2015/16.

They include the Passenger Rail Agency of South Africa (Prasa); the KwaZulu-Natal and Mpumalanga health departments; as well as the Department of Water and Sanitation and Gauteng’s Road and Transport and Human Settlements departments.

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