Makwetu: Irregular expenditure up more than R45bn

Auditor-General Kimi Makwetu announced the national and provincial audit results in Parliament on Wednesday.

FILE: Auditor-General Kimi Makwetu. Picture: GCIS

CAPE TOWN - Irregular expenditure among the country’s national and provincial departments increased by over R45 billion in 2016/17 financial year.

Auditor-General Kimi Makwetu announced the national and provincial audit results in Parliament on Wednesday.

Makwetu says there are still several departments with outstanding audits.

“This is a matter we need to give closer attention. The only way for it to be reduced is if those charged with oversight take specific steps to find out what’s given rise to this type of deviation of transparent processes.”

He says that audits have been delayed mostly because the departments in question have contested their findings.

Among those outstanding is the Prasa audit, which was one of the worst in the 2015/2016 financial year, with irregular expenditure amounting to R14 million.

Audit outcomes of state-owned enterprises continue to show a negative trend.

Makwetu says this can be attributed to inadequate controls, monitoring and oversight.

Over the past financial year, 47% of state-owned companies delivered unqualified audits with findings.

Armscor, Land Bank Life Insurance and three SOE subsidiaries (Gammatec NDT Supplies, NTP Radiosotopes and PetroSA Ghana) had improved to a clean audit status.

Petroleum Agency SA and Land Bank Insurance lost their clean audit status due to material non-compliance with legislation.

The South African Forestry Company Limited and its subsidiary, Komatiland Forests, did not disclose all irregular expenditure incurred and regressed to a qualified opinion.

Audits of South African Airways and its subsidiaries, except Mango Airlines, South African Express and the Independent Development Trust, had not been completed.

(Edited by Shimoney Regter)