Irregular government expenditure up by 80% - Auditor General

For R46 billion you can get 184 Nkandlas – that’s two for every Cabinet member! You can get 460 000 university bursaries of R100 000!

Bruce Whitfield, The Money Show

You end up buying a pen for R20 when it should cost R1. That is [an example of] irregular expenditure.

Kimi Makwetu, Auditor General

You have R1000 to spend and you end up having to pay penalties on top of that, because your administrative environment doesn’t respond to deadlines. Or, you have a contract to build a huge project, but because of inefficiencies and lack of planning you end up paying interest and penalties. Those are the types of things that constitute fruitless and wasteful expenditure.

Kimi Makwetu, Auditor General

National and provincial government departments racked up more than R46 billion in irregular expenditure during the past financial year, according to Auditor General Kimi Makwetu's latest report.

This is an increase of 80% on the previous year’s R26 billion.

The worst offenders were the Passenger Rail Agency of South Africa, the KwaZulu-Natal and Mpumalanga health departments, as well as the Department of Water and Sanitation and Gauteng’s Road and Transport and Human Settlements departments.

These six auditees were responsible for half of the R46 billion in irregular spending.

The Money Show’s Bruce Whitfield interviewed Auditor General Kimi Makwetu.

Listen to the audio below in which the Auditor General discusses his report and exactly what is meant by "irregular expenditure" (and/or scroll down for more quotes from it).

If you don’t’ have consequences for wrongdoing; it conspires to create an environment open to abuse and looting.

Kimi Makwetu, Auditor General

When you look at some of the transactions; it looks deliberate.

Kimi Makwetu, Auditor General

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Article brought to us by Old Mutual.


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