Tue May 21 19:59:20 SAST 2013
Tue May 21 19:59:20 SAST 2013

R2bn down the drain

Jan 17, 2012 | Mvuzo Ponono | 53 comments

PUBLIC entities, which include state-owned companies like Eskom, wasted more than R2bn during the past financial year in irregular expenditure. Salt rubbed into the wounds of taxpayers is that the figure rises to R5bn when wasteful expenditure and other costs accrued by many of the entities are added.

This was revealed in the auditor-general's report in Pretoria yesterday.

The infamous National Youth Development Agency, which made headlines last year by hosting a youth conference costing millions, was among the biggest spenders. The agency blew R68m because of supply chain management issues (SCM), wasted R2m and lost assets worth R39m.

Most entities seem to have struggled with managing their supply chain.

The National Lottery Board irregularly spent R11m. The Road Accident Fund wasted R26m and lost R15m due to scam issues. The Robben Island Museum blew a total of R35m. Auditor-General Terence Nombembe, pictured, listed SCM as one of the crucial areas that public entities and government departments were struggling with.

"The biggest issue is supply chain, especially when it comes to procurement. The rules are known but there is constant deviation from this," Nombembe said.

Added to the supply chain woes are problems with financial reporting. Most entities failed to provide adequate annual and monthly financial statements. Service delivery and compliance with regulations were problems.

Only 8% of public institutions received qualified audits, meaning a fraction had their books in order.

Comments

Tue May 21 19:59:20 SAST 2013 ::
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Jan 17, 2012

Baba_T

Taxpayers money wasted and what do we get from the President?

Silence and an occassional middle finger when he addresses us.


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Jan 17, 2012

Noir19

Its time we change leadership in ZA, Zuma is no good for our country
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Jan 17, 2012

MommaC

I would ask for vasaline but they'd probably charge me double for it.

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Jan 17, 2012

Khulza

Corruption corruption corruption that is all we read about these days.
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Jan 17, 2012

lucy1990

lol i never liked Zuma, wer is Mbeki en u need him mara
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Jan 17, 2012

candilious

Only 8% of public institutions received qualified audits, meaning a fraction had their books in order
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This just sums it up All ANC members and MP are the ones we show the finger too get rid of these people man.We cannot go on like this blerrie fokken dom koppe man all of them
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Jan 17, 2012

Reyataz

VIVA ANC! Screw paupers with no services and still living in shacks and walking down streets overflowing with raw sewage. Hopefully, one day S. Africans will learn to use their vote wisely!
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Jan 17, 2012

Balobedu

This is the results of cadre deployment. Our departments will never improve unless we separate between Admin and politics. The ANC is doing nothing about that. We need a strong ruling party which can address such. I think DA is capable of doing that. Lets vote for DA in the next coming elections. We must deal away with ANC as it is tired and old. Viva DA viva
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Jan 17, 2012

Dzel

Poor reporting Sowetan, The Star puts the figure at a staggering R 20bn, not R 2bn. You need to be a reliable source of information so that we don’t have to double check “facts” that you should get right the first time around. Unfortunately this happens a lot with your publication.

iol.co.za/news/politics/r20bn-of-public-cash-wasted-ag-1.1214095

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Jan 17, 2012

Reyataz

I love the ANC. They are the greatest beneficiaries of apartheid. The whites built a grand civilization that SA is, oppressed blacks and denied them education thereby making them kow-towers who are happy to live off crumbs from their fellow blacks (anything but white). The few blacks that protested were locked up and others jumped the borders. They came back as heroes to enjoy the luxuries of white civilization and are raping and pillaging state coffers whilst their own brethren wallow in raw sewage! Amandla!
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