Auditor-General: Irregular expenditure shot up to R166bn
Updated | By Nushera Soodyal
Irregular expenditure by government and its entities has increased to more than R166 billion.
This is R57 billion more than the previous reporting year.
Auditor-General Tsakani Maluleke on Wednesday afternoon released the audit outcomes for provincial and national departments.
"This is increasing from last year's R109.82 billion. Such expenditure, especially when it relates to procurement, is an indication that auditees do not follow supply chain laws and regulations when they are making procurement decisions."
She says unauthorised expenditure remains high at R3.2 billion.
Maluleke says it's mostly due to departments overspending on their allocated budgets.
"The key service delivery departments of health, education and public works have the poorest financial health of all.
"In total, these departments incurred 90 percent of all of the unauthorised expenditure. The operational deficits amounted to R15.5 billion."
Fruitless and wasteful expenditure has also shown no improvement.
"Two hundred and twenty auditees losing a combined R1.72 billion to fruitless and wasteful expenditure in the current year.
"The report also reveals that much of this expenditure relates to SOEs and the key service delivery departments."
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