CAPE TOWN – Auditor-General Kimi Makwetu says the R50 billion in irregular expenditure racked up by government departments and state entities could rise.
The reason is that the audits of a number of state-owned companies, including South African Airways, SA Express, and Denel, are not yet complete yet.
During th briefing to Parliament’s Standing Committee on Public Accounts and appropriations, Makwetu presented on Wednesday the national and provincial audit outcomes for the previous financial year.
He painted a bleak financial health of government departments and state entities, he said there was limited improvement in accountability for government spending.
Of the 434 departments and entities audited only 99 received clean audits, worse than previous audit.
In the report he said irregular expenditure rised by R5 billion and fruitless and wasteful spending skyrocketed by 200% from just under a billion to R2.5 billion.
Makwetu said, “Let’s just summarise it by saying, it is money that we must all be worried about.”
He said the reason for irregular expenditure was because of non-compliance with the law governing supply chain management.
The audit could of had worse outcomes but his office was unable to audit fund’s worth R6.5 billion because of missing and incomplete information.
He added that fifty-six percent of auditees procurement processes were unfair or uncompetitive.
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