City reports R554m in irregular spending
The City reported that there were 334 backlog cases – 311 of which were processed by December 31, 2022.
IRREGULAR expenditure amounting to R554m was recorded during the 2021/22 financial year. The eThekwini Municipality shared this figure in a statement, saying the City is committed to open governance and reducing irregular expenditure.
“While the City is processing the irregular expenditure, we are working hard, in line with the approved irregular-expenditure-reduction strategy, on strengthening and improving the relevant internal controls to prevent further occurrences,” said eThekwini acting City manager Dr Sandile Mnguni.
The City plans to process the reported balance (R4.8b) as of 30 June 2022 in the 22/23 financial year which includes an amount of R3.6b that has been submitted to the Municipal Public Accounts Committee (MPAC).
ALSO READ: City ‘pools’ resources to tackle Botanic Gardens drainage
In the statement, the City listed several focal points in its irregular-expenditure-reduction strategy.
These are: Automating the contract management and procurement cycle; procurement planning; compliance checklists; demand analysis; strengthening of key budget and internal controls, and capacity building.
The City added that independent Financial Misconduct Board (FMB) members were appointed in June 2021. The FMBs terms of reference were adopted by council in August 2021. The FMB have had ten meetings thus far and have processed 118 matters.
ALSO READ: City shares festive season stats – R3.8b GDP and 7 775 jobs
“As of December 31, 2022, 311 of the 334 backlog cases have been processed with only twenty-three remaining. The current matters are being prioritised. Furthermore, as highlighted by the Auditor General, several matters were identified by the City’s Integrity and Investigations Unit (CIIU),” said Mnguni.
“There is a concerted effort by the various structures in the municipality to implement the irregular-expenditure-reduction strategy. These include Council, MPAC, FMB, the Audit Committee and the Executive Committee,” he concluded.
For more from Berea Mail, follow us on Facebook, Twitter and Instagram. You can also check out our videos on our YouTube channel or follow us on TikTok.
