eThekwini's irregular expenditure nearly doubled, says AG

eThekwini's irregular expenditure nearly doubled, says AG

eThekwini's irregular expenditure nearly doubled in the previous financial year compared to the preceding period. 

ethekwini municipality
Ethekwini Municipality

The auditor-general's office on Monday presented the audit outcomes at a council meeting in Durban.

 

Head of Portfolio at the AG Vanuja Maharaj told MPL’s that irregular spending in 2021/22 period ballooned to R1.5 billion.

 

She said it was a 94% increase compared to the year before.

 

"The root causes for the increase in irregular expenditure is centred around controls not being implemented to ensure appropriate procurement processes are adhered to. As to consequence management processes not being implemented and at times a lack of understanding of the SCM regulations, particularly the one related to local content.”

 

Leader of the African Democratic Change Visvin Reddy said the report paints a dark picture

 

"Let’s understand that this municipality is on the brink of collapse right now based on this report. And we better treat this with the severity and seriousness it deserves. This is not politics, I think we are missing the entire point here."

 READ: IFP rules out ‘unholy alliance’ with ANC following EFF coalition breakdown

Action SA's Zwakele Mncwango said urgent action is needed.

 

"I'm concerned about the repeat findings, clearly there are findings that the council has been repeatedly going over on non-compliance. I do believe this council need intervention. Maybe an administrator might be the solution." 

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