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AG's report: Billions of rands wasted by Nelson Mandela Bay metro

A report by the Auditor-General highlights R1.3bn in irregular expenditure during the 2014/15 financial year.

FILE: The Auditor-General's report highlights R1.3 billion in irregular expenditure in the 2014/15 financial year. Picture: www.nmbt.co.za

CAPE TOWN - Billions of rands have gone down the drain in the Nelson Mandela Bay Municipality in the Eastern Cape.

The Auditor-General last week released a damning report into the finances of the troubled municipality where, in some cases, officials are unable to account for millions of taxpayers money.

It highlights R1,3 billion in irregular expenditure in the 2014/15 financial year.

Fruitless and wasteful expenditure amounted to R146 million.

The Auditor-General also noted dozens of missing tender files and documents amounting to deals worth R2,6 billion.

Opposition parties have cautioned the metro is on the brink of bankruptcy due to the apparent lack of financial controls.

National Treasury is also probing the ill-fated Integrated Public Transport System (IPTS), a R2-billion bus project that was meant to have been operational since 2010.

The municipality has denied it was considering selling the buses, which have been deemed too big for the narrow bus lanes.

Automotive engineer Pierre Joubert has also alleged the buses doors are on the wrong side for some stops.

Numerous attempts to get comment from metro officials have been unsuccessful.

Read the Auditor-General's full report on municipality's website here.