Lim still records unacceptably high levels of expenditure
Makwetu said the increase in unauthorised expenditure was largely due to inadequate budgeting for non-cash items
POLOKWANE – According to the Auditor-General, Kimi Makwetu, Limpopo still records unacceptably high levels of increasing irregular (R1,3 million), unauthorised (R1,2 million), as well as wasteful expenditure (R81 million).
In his report, Makwetu attributed the situation mainly to a lack of internal control systems that could prevent, detect or address deviations. In addition, there were no consequences for poor performance and transgressions, which was identified at 63% of the auditees.
Makwetu said the increase in unauthorised expenditure was largely due to inadequate budgeting for non-cash items.
“The consistent high level of supply chain management transgressions driven by uncompetitive or unfair procurement processes and conflicts of interest, remains a serious concern,” he said.
It is worth noting that the amounts disclosed as irregular expenditure are potentially understated as eight municipalities had qualifications on irregular expenditure.
Among Limpopo’s worst performing municipalities:
1. Mopani Municipality – disclaimer (unauthorised expenditure of R1 million, irregular expenditure of R8,2 million.
2. Ephraim Mogale Municipality – disclaimer.
3. Mogalakwena Municipality – disclaimer (unauthorised expenditure of R47,9 million, irregular expenditure of R175,5 million).
4. Thabazimbi Municipality – disclaimer (R30,3 million unauthorised expenditure, irregular expenditure of R13,2 million and fruitless and wasteful expenditure of R18,3 million).
5. Tubatse Municipality – disclaimer (R1,4 million unauthorised expenditure, irregular expenditure of R130,2 million, and fruitless and wasteful expenditure of R1,5 million).
This, according to Makwetu, means the completeness of the amounts disclosed could not be confirmed during the audit. In addition, the councils did not investigate these expenditures as part of their oversight role and did not determine the necessary corrective action to be taken as required by legislation.
“The leadership should act decisively to introduce punitive measures to curb irregular as well as fruitless and wasteful expenditure,” he said.
Premier Stanley Mathabatha called for a special intergovernmental forum where each municipal manager had to make a presentation on the current audit outcomes, challenges being experienced and proposed solutions.
Municipal managers, he said, should be held accountable following the audit outcomes.
Mathabatha said an addendum should be added to all municipal managers’ performance agreements to include audit outcomes as a performance indicator. He made it clear there would be severe consequences for any disclaimed or adverse outcomes in 2015/16.
