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Nombembe's report is alarming - Cosatu

Cosatu spokesperson Patrick Craven said a lot could have been done with the lost money.

Auditor-General Terence Nombembe speaks on reports relating to audits of national and provincial government departments. Picture: SAPA

JOHANNESBURG - Auditor-General Terence Nombembe's report on local municipalities paints a grim picture of incompetence, maladministration and wasteful expenditure, the Congress of South African Trade Unions (Cosatu) said on Tuesday.

Monday's report revealed that only 13 municipalities received clean audits for the 2010/2011 financial year.

Municipalities incurred more than R11billion in unauthorised and irregular expenditure, while a total of 54 councils underspent their budgets.

Cosatu spokesperson Patrick Craven said a lot could have been done with the lost money.

"Just think of what could have been done with R11billion. It could have prevented the [textbook] problem at Limpopo schools."

Nombembe said local councils also failed to act on his recommendations, despite being informed about financial problems.

He also said many municipal officials do not have the adequate financial skills.