Gauteng municipalities collectively wasted R3,08 billion in public money according to recent figures released by the Auditor-General.
The three metros combined wasted 92 per cent of this, with the biggest culprit Johannesburg, squandering 57 per cent of the total wastage in Gauteng, followed by Tshwane’s 20 per cent and Ekurhuleni’s 15 per cent.
This was revealed in the Auditor-General’s report on the audit outcomes for Gauteng municipalities for the 2011/12 financial year. The figure is the combined total between identified unauthorised, irregular, fruitless and wasteful expenditure for the year under review.
Among the local municipalities Mogale City performed the worst contributing almost four per cent to overall wastage.
The worst-performing municipalities in Gauteng, if wastage is measured as a percentage of its total budget for the year under review are Mogale City (7,6 per cent), Westonaria (5,8 per cent), Johannesburg (5,5 per cent) and Randfontein (5,4 per cent).
“The DA-led Midvaal was the only local municipality in Gauteng that did not waste a cent of public money, while Sedibeng was the only district municipality.
“The impact of R3 billion taken out of potential municipal service delivery in Gauteng cannot be overstated.
“This huge loss points to a lack of internal controls in Gauteng municipalities and is also indicative of their financial management problems.
“If this trend is not turned around very quickly Gauteng may be faced with various municipalities that can no longer pay their bills due to money being wasted. This will require the provincial and national government to bail out these municipalities: a definite risk that requires deliberate mitigation,” says DA Gauteng Local Government spokesperson, Fred Nel.
Municipal losses also impact the economic growth of both municipalities and the province.
The effective utilisation of resources in the delivery of services to communities is an important job creator and when monies go a begging, economic growth, required for job creation, is stunted.
“The DA calls on Gauteng Local Government and Housing MEC Ntombi Mekgwe to undertake an urgent and in-depth discussion with the provincial legislature portfolio committee on local government about what the provincial government will do to turn the tide against wastage.”
