ETHEKWINI Municipality is taking great pains to curb irregular expenditure. That’s the message that was delivered at a meeting of the Executive Committee on 27 June where a report was tabled outlining irregular expenditure for the 2015/16 and 2016/17 financial years.
The report informed the committee of the non-compliance with the Supply Chain Management (SCM) Policy which resulted in irregular expenditure incurred by the municipality. The report also highlighted the processes being followed to deal with irregular expenditure.
In 2015/16, irregular expenditure of R34 079 576.54 was identified and reported. Of this, ten contracts to the value of R25 871 208.60 were deemed to be irregular. The Auditor General identified expenditure, relating to awards to people in the employ of the state totalling R1 490 943 as irregular.
According to the report, there has been a significant decrease in irregular expenditure in eThekwini Municipality from R1.3 billion in 2011/2012 to R783 million in 2012/2013. This was further reduced to R334 million in 2013/2014. In 2014/2015, irregular expenditure was R212 million, and further reduced to R208.0 million in 2015/2016. The total irregular expenditure to-date for the 2016/17 financial year amounts to R33 798 553.63.
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The report defines irregular expenditure as expenditure incurred by the Municipality in contravention of the Supply Chain Management Policy of the Municipality.
The report states that depending on the outcome of further investigations by the Speaker, Councillor William Mapena, City Manager, Sipho Nzuza, the Ombuds Office, line departments and the Municipal Public Accounts Committee, further action may arise. This includes disciplinary action, recovery of monies and criminal charges being instituted where applicable.
Deputy City Manager for Finance Krish Kumar said there were checks and balances in place to curb irregular expenditure. “The City Manager has been clear about using section 36 and irregular expenditure. We are confident there are sufficient controls put in place to further curb this,” he added.
Speaker Councillor Mapena said this was annual irregular expenditure and issues of disciplinary measures would be contained in the annual report.
