More than R32 million in fruitless and wasteful expenditure, incurred under the watch of Kouga’s two previous Councils, has been certified as irrecoverable and written off.
Kouga Executive Mayor, Horatio Hendricks, said it was an indictement on the municipality’s past leaders that millions of Rands had been wasted when it could have gone towards improving service delivery to communities.
According to an item tabled to Council last Friday, a total of R32 89 407 in fruitless and wasteful expenditure was incurred by the municipality from 2008 to 2016.
“That is an average of more than R4 million a year,” he said.
He said several measures have been implemented since the inauguration of the current Council to curb fruitless and wasteful expenditure.
“The success of these measures, driven by the DA-led Council, is evident in the sharp drop of the amounts, with the fruitless and wasteful expenditure for the most recent audited year, 2018/2019, totalling R53 650 only.”
He said the municipality was on track to eliminate fruitless and wasteful expenditure completely so that ratepayers would get maximum value for their money.
He said the bulk of the fruitless and wasteless expenditure from 2008/2009 to 2015/2016 was the result of interest that had to be paid to creditors due to late payments by the municipality.
“We have been able to minimize this through the appointment of competent staff and by adopting fully funded budgets, with realistically-estimated revenue.
“A standard operating procedure has also been developed for the submission of invoices from service providers to prevent late payments due to non-receipt of invoices.”