Auditor General Makwetu Drops The Bombshell On Why Govt’s Irregular Expenditure Skyrocketed


Throwing more light on his report on national and provincial audit outcomes for 2015/2016 year on Wednesday, Auditor General Kimi Makwetu slammed the Presidency for contributing immensely towards the country’s deteriorating financial state.

He revealed billions of irregular expenditure by the Zuma-led administration and some state-owned enterprises accumulated a whopping R46-billion in the 2015/2016 financial year.

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The R46 billion, he explained, was as a result of 80% increase from the 2014/2015 expenditure of R25.7 billion incurred by the national and provincial government departments.

Makwetu asserted that from his audits, he found that the financial health of 76% of government departments and 39% of public entities is “either concerning or needs intervention”

In addition, he disclosed that five percent of departments and 10% of public entities are currently in poor shape, in that, their continuous operation hangs by the thread.

Kimi Makwetu affirmed that the Passenger Rail Agency of South Africa (Prasa) alone contributed R13.9-billion in irregular expenditure.

With all these, the Auditor General bluntly alleged that these irregular expenditures were prompted by the Presidency’s failure to comply with government policies such as paying suppliers within 30 days and supply chain management policies.

“The inability of the Presidency to have sustained their clean audit outcome is of particular concern given the expectation for the Presidency to lead by example and set the tone when it comes to exemplary financial and performance management and good governance,” Makwetu said.

More so, he accused the Presidency of shoving off suggestions by the AG to improve governance, following errors noted in September 2015’s interim financial statements and the conclusions of the previous year’s audit.

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Nonetheless, the Auditor General disclosed that the Presidency’s financial health improved, adding that this feat gave rise to a cash injection of R43 million.

It is pertinent to note that Kimi Makwetu’s report audited 169 national and provincial departments and 315 public enterprises. It contained 484 auditees in total, with a budget of R1.2-trillion for 2015/16.