AG reveals spike in irregular expenditure at some WC municipalities

The Auditor-General's office briefed MPLs yesterday, saying an increase of nearly 50% has been recorded.

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CAPE TOWN - Irregular expenditure by some Western Cape municipalities has increased by nearly 50%, while wasteful and fruitless spending has dropped.

This emerged during a briefing by the Auditor-General's office to the provincial legislature's standing committee on local government yesterday.

Officials told MPLs fruitless expenditure decreased to R6,3 million from just over R13 million in the 2013/2014 financial year.

The Auditor-General's report shows irregular expenditure of R340 million in the 2014/2015 financial year.

The previous year the figure was R165 million. The office's Ashley Olkers says the irregular expenditure relates to only some municipalities.

"In terms of the slide, you can see the biggest contributor to the irregular expenditure would be the Oudtshoorn Municipality at R110,7 million."

Officials also raised concern over the financial health of six municipalities struggling to collect debt.

More than 10% of that debt has been classified as almost irrecoverable.