National Departments’ Annual Reports has exposed that over R50 billion was wasted in the 2016/2017 financial year.
This is according to the Democratic Alliance (DA) party. According to the opposition party, the amount was lost to irregular, fruitless and wasteful expenditure.
DA hinted that it evaluated all the national departments’ annual reports submitted to Parliament. Precisely, the party found that the national departments and their entities wasted R51.1 billion in the 2016/2017 financial year.
The biggest offenders were entities. They accounted for about R35.9 billion waste, an amount equivalent to 70% of the total waste.
DA said the staggering amount is expected to increase because the departments of Environmental Affairs, Defence, and State Security are yet to table their annual reports.
Also, entities like the South African Revenue Service, South African Airways, South African Express, South African National Roads Agency, and Passenger Rail Agency of South Africa have not finalised their annual reports.
As learnt, the Auditor-General expressed concern about financial recklessness in entities like the Independent Police Investigative Directorate (IPID), the National Health Laboratory Service, PetroSA and the South African Broadcasting Corporation (SABC).
It is said that the A-G couldn’t provide audit opinions for either the Unemployment Insurance Fund or the Compensation Fund.
In all, DA related that audit results of departments and entities were again, dismal with no fewer than 22 outstanding audit reports, as well as a litany of disclaimed (3), adverse (4) or qualified (28) audit opinions.
“More than 20% of all audits were either outstanding or failed to meet accounting standards. South Africans run the risk of becoming jaded by the governance failures of the ANC government,” warned the party.
Afterwards, it charged that the people of the country must never lose sight of the opportunities lost by the R50 billion squandered through irregular, fruitless and wasteful expenditure.
“Governance failures come at a great cost to South Africa’s most vulnerable. We cannot rest until every valuable resource is directed at improving the lives of honest, hard-working South Africans,” stated DA.