Wasteful expenditure has gone up 10 times in Limpopo's municipalities in the past three financial years.
This was according to provincial Auditor-General Nthanyi Dhumazi, who gave a presentation at the Limpopo Local Government Summit in Polokwane on Tuesday.
Dhumazi said, since the 2013/2014 financial year, the province's fruitless and wasteful expenditure had escalated 10 times, adding that this was money which should have been used towards service delivery.
She spoke before an audience of dignitaries, including ministers, MECs and mayors. The summit, which is expected to conclude today, goes under the theme "Building a Developmental Local Government by Getting the Basics Right".
Dhumazi said although some municipalities had achieved improved audit reports, the province had not produced a single clean audit, which was a concern.
She said irregular expenditure had gone up 27% compared to the 2014/2015 financial year and by about 96% compared to 2013/2014.
Dhumazi said the major contributor to irregular expenditure was problems with local government financial management systems.
She said there was also a decline in senior management oversight due to skills shortages and high vacancy rates at top positions.
While six municipalities obtained disclaimer audit outcomes in the past financial year, about three had managed to move out of that zone.
Dhumazi said the situation could be changed with strong leadership and an increase in financial skills.
Earlier, Limpopo premier Stan Mathabatha had warned that disclaimer audit outcomes would not be tolerated. "The one thing that should never be tolerated is a disclaimer. Nothing undermines our people like a disclaimer opinion."
Mathabatha said disclaimers were happening because officials were failing to produce pivotal documents and financial reports, making it difficult for the Auditor General to formulate an opinion.
SA Local Government Association provincial chairwoman Thembi Nkadimeng said Mathabatha should take note of the struggles faced by municipalities before "disclaiming" them. She said the municipalities were struggling because the systems were not efficient.
Fruitless and wasteful expenditure increases 10 times at municipalities
Wasteful expenditure has gone up 10 times in Limpopo's municipalities in the past three financial years.
This was according to provincial Auditor-General Nthanyi Dhumazi, who gave a presentation at the Limpopo Local Government Summit in Polokwane on Tuesday.
Dhumazi said, since the 2013/2014 financial year, the province's fruitless and wasteful expenditure had escalated 10 times, adding that this was money which should have been used towards service delivery.
She spoke before an audience of dignitaries, including ministers, MECs and mayors. The summit, which is expected to conclude today, goes under the theme "Building a Developmental Local Government by Getting the Basics Right".
Dhumazi said although some municipalities had achieved improved audit reports, the province had not produced a single clean audit, which was a concern.
She said irregular expenditure had gone up 27% compared to the 2014/2015 financial year and by about 96% compared to 2013/2014.
Dhumazi said the major contributor to irregular expenditure was problems with local government financial management systems.
She said there was also a decline in senior management oversight due to skills shortages and high vacancy rates at top positions.
While six municipalities obtained disclaimer audit outcomes in the past financial year, about three had managed to move out of that zone.
Dhumazi said the situation could be changed with strong leadership and an increase in financial skills.
Earlier, Limpopo premier Stan Mathabatha had warned that disclaimer audit outcomes would not be tolerated. "The one thing that should never be tolerated is a disclaimer. Nothing undermines our people like a disclaimer opinion."
Mathabatha said disclaimers were happening because officials were failing to produce pivotal documents and financial reports, making it difficult for the Auditor General to formulate an opinion.
SA Local Government Association provincial chairwoman Thembi Nkadimeng said Mathabatha should take note of the struggles faced by municipalities before "disclaiming" them. She said the municipalities were struggling because the systems were not efficient.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos