Is the government showing a total disregard for finance laws, overspending on fruitless endeavours?
Auditor-general Kimi Makwetu released the 2018-2019 national and provincial audit outcomes. A report which shows South Africa is making little progress in minimising irregular expenditure.
During a media briefing on November 20, Makwetu claimed political leaders, accounting officers, authorities and oversight structures need to take action and restore the government’s accountability to South Africa.
He claims this can be done by acting on the outcomes of the recent audits, dealing efficiently with material irregularities which are identified and putting preventative measures in place to stop undesirable stewardship over public funds,
One of the key findings in Makwetu’s report shows both fruitless and wasteful expenditure continuing to rise, with 223 auditees apparently losing a staggering R849 million in the current year.
Furthermore, Makwetu claims irregular expenditure has increased to R62.6 billion, from the R51 billion reported in 2018.
Not only is there severe lack of accountability, Makwetu says officials are not pushing to implement reform recommendations. He explains that accounting officers and authorities have been slow in implementing his department’s recommendations, even disregarding them at times.
He says the recommendations do not require more than what the officials are already legally obligated to do by the Public Finance Management Act.
Makwetu adds the accountability mechanisms are not working as they should. This is resulting in continuous calls for something to do be done, especially by the Auditor-General for South Africa.
Other findings in the report include:
- The audit outcomes have regressed since 2014-2015. Currently, only 80 auditees have improved while 91 regressed. Furthermore, only 100 (26%) of the auditees managed to receive a lean audit. This is because they managed to produce quality financial statements, performance reports and comply with key legislation.
- Unauthorised expenditure remains at an extremely high level, standing at R1,365 billion.
- A total deficit of R62.06 billion was incurred by 31% of public entities; whose expenditure exceeds their revenue.
With over-expenditure proving to be problematic, how do you feel the problem can be addressed? Share your views and opinions with us in the comment section below.
