Gauteng incurs over R5bn in irregular expenditure
Lack of adherence to supply chain management rules has seen the Gauteng provincial government incurring over R5 billion in irregular and wasteful expenditure, according to the Auditor General report released by premier David Makhura on Tuesday.
Total irregular expenditure for the 2014/2015 financial year was about R5,8 billion, which was an increase from about R3.8 billon in the previous financial year.
”I am deeply concerned by by the increase in irregular expenditure due to a failure to comply with laws that govern financial management. [The] human settlements department was one of the contributors where money meant to build new houses was used to repair asbestos roofs damaged by hailstorms,” Makhura said.
”Shifting the human settlements budget to deal with disaster is something [that] should never be repeated.”
The health department and the roads and transport department were the main contributors to fruitless and wasteful expenditure.
”Following my instructions, the MEC of Finance [Barbara Creecy] has already written to all departments to to emphasise that urgent investigations must be conducted in line with the Public Finance Management Act and disciplinary measures taken against those officials whose actions resulted in irregular expenditure,” said Makhura.
All the departments received unqualified opinions, except the health department which received a qualified opinion.
The departments that achieved clean audits included the Office of the Premier, the provincial legislature, treasury and departments of social development; cooperative governance and traditional affairs; finance; and economic development.
The province’s agencies also received unqualified opinions, except G Fleet, the province’s vehicle fleet management agency, which received a disclaimer.
A disclaimer indicates that the AG was not able to make a finding from the information provided. - ANA
(File photo: Gallo Images)