Auditor-General says irregular expenditure rises to over R166bn

Irregular expenditure has risen to over R166-billion.

That’s an increase of R57-billion since last year.

Auditor-General Tsakani Maluleke says this shows proper supply chain processes are not being followed.

“Fruitless and wasteful expenditure is an important indicator of the disciplines in which the public purse is being managed,” she said.

Maluleke said mismanagement of lease agreements by Public Works has led to a significant loss of funds.

She says delayed infrastructure projects directly affect service delivery.

“The sector should curb the financial loss and the irregular expenditure that arise from mismanaged lease so that funds can be used to maintain the properties they have and enable infrastructure project to be completed in time,” she said.

Seven State-Owned Enterprises have not submitted reports to the Auditor-General.

They include financially troubled SAA and Denel.

Maluleke said the growing trend to not submit is concerning.

She said the financial health of SOEs have generally deteriorated.

Source: eNCA

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