Rise in irregular expenditure in municipalities
Irregular expenditure in municipalities has increased by just over 50 percent since the previous financial year.
This was revealed by Auditor General Kimi Makwetu in Pretoria yesterday, with the release of the latest audit into municipalities.
Makwetu says the levels of irregular expenditure is clearly a major problem.
"The total at the end of this period for all of them combined is about R16.8 billion. It is a high number. Anything with nine zeros before the comma is big by anybody's imagination."
The report also rates the financial health of 65 percent of the municipalities as either concerning or requiring intervention, compared to 60 percent the previous financial year.
Makwetu says municipalities are spending beyond their means.
"The combination of those factors where you've got unsustainable financial ratios as well as a weak controlled environment with no consequences, where leadership sometimes take step, sometimes they don't - what you end up finding is a municipality that has got so much obligations, but so little to use in order to meet those obligations."