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Government bodies wasted R2bn: A-G

Government entities racked up more than R2 billion in wasteful expenditure in 2012/13 and a further R26.4bn in irregular spending, the auditor-general said on Wednesday. Both these figures were more than 33 percent higher than those in the previous financial year, Thembekile Makwetu told Parliament’s watchdog public accounts committee, Scopa. There had also been R2.3bn in unauthorised expenditure, he said, noting that no progress had been made in reducing the extent of this since 2011. Home Affairs had been the biggest culprit, running up R301 million in unauthorised expenditure, followed by Public Works with R166m.

Most of the irregular expenditure arose through the departments’ failing to obtain three tenders for contracts and their contracting companies that did not have tax clearance from Sars. Makwetu said the overall audit outcomes of government entities had improved in the past year, with 58 percent avoiding qualified audits. However, this was largely because his office had helped financial staff to correct errors made in their original submissions because they lacked reliable internal controls. Without these interventions “it would not have been an improvement”, Makwetu said. The auditor-general’s office had to step in because “very primary systems are not in place” in government accounting. “Nothing will beat very strong daily disciplines in all these institutions… In the absence of that, this will become a perpetual cry that does not go anywhere.”

Makwetu said his office believed there was a fundamental lack of leadership in departments with regard to introducing the internal controls. “If there was proactive leadership there would be a possibility for consequences… Our assessment is it’s nowhere near where it ought to be.”

Source: www.iol.co.za

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Government bodies wasted R2bn: A-G

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