PRETORIA – Local government officials are doing little to nothing to stop ballooning multi-billion rand irregular expenditure.
That’s the word from Auditor General Kimi Makwetu.
On Wednesday, he released an overview of municipal finances over the past five years.
More municipalities are doing the right thing.
The number receiving a clean bill of health from the auditor general has increased from only 13 five years ago to 54.
But it isn’t all good news.
Municipal finances 2014 -15
– Irregular expenditure has more than doubled to almost R15-billion since 2010 -11;
– Unauthorised expenditure has increased threefold to over R15-billionn since 2010 -11;
– Fruitless and wasteful expenditure has increased by over R1-billion since 2010 -11, to R1,34-billion.
Two of the main culprits are the Nelson Mandela Bay Metro in the Eastern Cape and Matjhabeng Municipality in the Free State.
Together they are responsible for over R570-million in fruitless and wasteful expenditure.
Most municipalities aren’t wasting money, but 92 percent of South Africa’s 278 municipalities are spending more than they have, which means they are sinking into debt.
eNCA
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