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.

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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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