South African municipalities recorded irregular expenditure amounting to R25.2bn in the 2017/2018 financial year.
This is according to auditor-general Kimi Makwetu who released the audit findings report of 257 municipalities.
Although irregular expenditure had decreased from the previous year's R29.7bn, Makwetu said the 2017/2018 financial year recorded the highest level of noncompliance with key governance laws since 2011/2012.
Only 18 municipalities received clean audits after they produced quality financial statements and performance reports.
"Not only did the unqualified opinions on the financial statements decrease from 61% to only 51% but the quality of the financial statements provided to us for auditing was even worse than in the previous year," Makwetu said.
He added: "Only 19% of the municipalities could give us financial statements without material misstatements."
Makwetu said that material noncompliance with key legislation was now at 92% of the municipalities, up from 85% in the previous year.
Audit report points to R25.2bn irregular expenditure by municipals
Image: Trevor Samson
South African municipalities recorded irregular expenditure amounting to R25.2bn in the 2017/2018 financial year.
This is according to auditor-general Kimi Makwetu who released the audit findings report of 257 municipalities.
Although irregular expenditure had decreased from the previous year's R29.7bn, Makwetu said the 2017/2018 financial year recorded the highest level of noncompliance with key governance laws since 2011/2012.
Only 18 municipalities received clean audits after they produced quality financial statements and performance reports.
"Not only did the unqualified opinions on the financial statements decrease from 61% to only 51% but the quality of the financial statements provided to us for auditing was even worse than in the previous year," Makwetu said.
He added: "Only 19% of the municipalities could give us financial statements without material misstatements."
Makwetu said that material noncompliance with key legislation was now at 92% of the municipalities, up from 85% in the previous year.
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
Related articles
Latest Videos