Heavy increase in irregular expenditure in South Africa, now pegged above R45bn, says AG
Irregular expenditure by government departments and State-owned entities has ballooned by over 50% in 2016/2017 when compared to the previous financial year, topping R45-billion, Auditor-General Kimi Makwetu revealed on Tuesday.
“Irregular expenditure has increased by 55% since the previous year to R45.6-billion. This amount could have been higher, as it does not include the irregular expenditure of auditees where audits are still ongoing, including PRASA which had an irregular expenditure of almost R14-billion last year,” Makwetu revealed at a press briefing in Pretoria.
“Furthermore, 25% of the auditees disclosed that they had incurred irregular expenditure but that the full amount was not known, while 28 auditees were qualified as the amount they had disclosed was incomplete.”
The Auditor-General said had the irregular expenditure of entities whose audits have not been completed been factored, the total amount of irregular expenditure could rise to as high as R65-billion.
The number of entities incurring irregular expenditure has also increased to 265.
Makwetu said the significant increase can be attributed overall to continued supply chain management weaknesses. He said “although deviations are allowed, we found that it had often not been approved, or if approved, the deviation was not reasonable or justified”.
Auditees in KwaZulu-Natal, the Free State, Limpopo and the Eastern Cape were the main contributors to the significant increase in irregular expenditure. Makwetu said the sectors with the highest amounts of irregular expenditure were health – R11.77-billion; transport R6.37-billion; and education R6.09-billion.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ROSOND provides fast, efficient, safe, and cost-effective drilling and grouting services to mining and exploration industries throughout Africa.
VISIT SHOWROOM
AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
