IN an effort to ensure good governance and accountability in the eThekwini Municipality, the municipality’s acting head of communications, Mandla Nsele, announced that measures have been implemented to reduce irregular expenditure in the City.
This follows the tabling of a report at an Executive Committee meeting held on 30 July which outlined irregular expenditure incurred during the 2018/19 financial year.
“There has been a decrease of almost R151 million in irregular expenditure in 2018/19 compared to the 2017/18 financial year,” said Nsele.
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The mentioned report also stated that irregular expenditure, which is a result of non-compliance with supply chain management policy, was R581 492 759.38 for the 2018/19 financial year.
Included in this amount is R138 272 435.63 relating to the previous financial years (prior to 2018/19) and R443 220 323.75 relating to the 2018/19 financial year.
Irregular expenditure in the City was R733 million in the 2017/18 financial year.
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Acting eThekwini Mayor Fawzia Peer said there was political will to ensure irregular expenditure did not increase in the City.
“Irregular expenditure is very different from wasteful and fruitless expenditure. I encourage departments to plan in advance especially when contracts are expiring to avoid irregular expenditure,” said Peer.
Speaking on the tabled report, Deputy City Manager of Finance Krish Kumar said the City has zero tolerance with regards to irregular expenditure and continued to look at ways of reducing it.
While there has been a noted decrease in irregular expenditure, the City has implemented measures to further reduce it.
This includes:
– All irregular expenditure will be reported to ensure transparency
– All instances of irregular expenditure will be investigated by the CIIU
– Based on the outcome of the CIIU report, consequence management will be instituted
– In terms of consequence management, and where necessary, disciplinary action, criminal action, and/or recovery will be instituted
– The regularisation process will be robust and rigorous, and will requirs sign off from the relevant Head, Deputy City Manager and vetting by the Bid Adjudication Committee
– Consequence management will be monitored on a monthly basis with reports being provided to the Municipal Public Accounts Committee (MPAC) to monitor progress being made
– Instructions have also been issued to all Deputy City Managers and Heads so that all disciplinary cases / consequence management be expedited
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