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Financial health of some govt depts continue to deteriorate, says Makwetu

Auditor-General Kimi Makwetu has flagged the need for urgent steps to prevent the collapse of some provincial Health, Education and Public Works Departments.

FILE: Auditor-General Kimi Makwetu. Picture: GCIS

CAPE TOWN - Auditor-General Kimi Makwetu has warned that the financial health of national and provincial government departments, and their entities, continues to deteriorate with the Health, Education and Public Works Departments in some provinces needing urgent intervention to prevent their collapse.

Makwetu is giving a briefing on the audit outcomes for the 2017/18 financial year at Parliament.

He says overall audit outcomes have regressed.

The continued decline in national and provincial audit results comes at a huge cost to the fiscus and in terms of service delivery.

Makwetu says irregular expenditure came in at R51 billion. But this excludes the R28.4 billion racked up by state-owned companies not audited by his office, of which Eskom was responsible for R19.6 billion and Transnet, just over R8 billion.

Makwetu says unauthorised spending is up 38% on the previous year to R2.1 billion – 86% of which was due to overspending. Fruitless and wasteful expenditure soared by 200% from the previous year to R2.5billion.

Makwetu has flagged the need for urgent steps to prevent the collapse of some provincial Health, Education and Public Works Departments.

(Edited by Mihlali Ntsabo)