MBOMBELA – The provincial government’s irregular expenditure exceeded R1 billion in 2013/14. This was according to the Auditor-General (AG).
The AG Mr Kimi Makwetu, during a briefing to members of the provincial legislature, revealed on Thursday that his office had found 142 instances of irregular expenditure, with 76 per cent of provincial government departments contributing to the total, which had increased from R234 million in 2012/13.
According to the AG the biggest contributors were the departments of health with R818 million, education with R56 million and the Office of the Premier with R68 million. The main areas of non-compliance were procurement without competitive bidding or quotation process and the unavailability of documents specifically required by procurement-related legislation.
Makwetu said the reasons for the increase included instability at the head of supply chain management (SCM) with two of the top three highest contributors not having a permanent person occupying the head of SCM position. He also found that a lack of proper planning, a lack of understanding of legislation by officials and failure to investigate previously reported irregular expenditure had contributed to the increase.
A total of R7,4 million was incurred in fruitless and wasteful expenditure in 2013/14 among 65 per cent of those audited, a decrease from R16,5 million in 2012/13. The highest contributors were legislature, the department of education and the Mpumalanga Economic Growth Agency. The AG found it was the result of overpayment of suppliers and employees, interest on late payments and payouts ordered by the Commission for Conciliation, Mediation and Arbitration.
Mr Anthony Benadie, DA provincial leader said the findings were worrisome. “Mpumalanga’s finances are not at all healthy, and left unaddressed, could see our financial stability and viability deteriorate to the point of terminal illness.
“It is concerning that the provincial legislature, tasked with holding the executive authority to account, was cited as one of the highest contributors to fruitless and wasteful expenditure.”
