Irregular expenditure by municipalities has more than doubled since the current administrations took office five years ago.
This was one of the findings presented in Auditor-General Kimi Makwetu’s 2014/15 report on municipalities‚ launched on Wednesday.
In 2010/11‚ irregular expenditure was R7.3-billion‚ but this has risen to R14.75-billion‚ the report said.
The reason for the increase is the continued non-compliance with supply chain management legislation‚ Makwetu said.
Fruitless and wasteful expenditure spiked by more than R1-billion in the past five years.
Municipalities in Mpumalanga‚ Eastern Cape‚ North West‚ Free State and Northern Cape were the main culprits linked to the increase.
Unauthorised expenditure increased threefold in the past five years to R15.32-billion‚ due to the overspending of budgets‚ the report said.
On a more positive note‚ Makwetu noted that municipalities were becoming better at reporting their irregular spending.
In 2010/11‚ 73% of irregular expenditure by municipalities was identified in the auditing process‚ but in 2014/15‚ 69% of municipalities identified their own irregular expenditure.
A-G report: Irregular spending doubles‚ but municipalities getting better at reporting it
Irregular expenditure by municipalities has more than doubled since the current administrations took office five years ago.
This was one of the findings presented in Auditor-General Kimi Makwetu’s 2014/15 report on municipalities‚ launched on Wednesday.
In 2010/11‚ irregular expenditure was R7.3-billion‚ but this has risen to R14.75-billion‚ the report said.
The reason for the increase is the continued non-compliance with supply chain management legislation‚ Makwetu said.
Fruitless and wasteful expenditure spiked by more than R1-billion in the past five years.
Municipalities in Mpumalanga‚ Eastern Cape‚ North West‚ Free State and Northern Cape were the main culprits linked to the increase.
Unauthorised expenditure increased threefold in the past five years to R15.32-billion‚ due to the overspending of budgets‚ the report said.
On a more positive note‚ Makwetu noted that municipalities were becoming better at reporting their irregular spending.
In 2010/11‚ 73% of irregular expenditure by municipalities was identified in the auditing process‚ but in 2014/15‚ 69% of municipalities identified their own irregular expenditure.
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