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Irregular expenditure in WC up by R502m, AG reveals

Auditor-General Kimi Makwethu on Wednesday revealed that only 18 of the country's 257 municipalities received clean audits in the 2017-18 financial year.

FILE: Auditor-General Kimi Makwetu. Picture: GCIS

CAPE TOWN - Twelve municipalities in the Western Cape have clean audits, but the others have deteriorated.

Auditor-General Kimi Makwetu on Wednesday revealed that only 18 of the country's 257 municipalities received clean audits in the 2017-18 financial year.

In the Western Cape, irregular expenditure increased to R667 million, compared to R165 million in 2016-17 financial year.

The Auditor-General said that the increase in irregular expenditure was largely due to the incorrect application of legal prescripts, mainly in the area of supply chain management.

Makwetu evaluated key infrastructure projects relating to various services, like water and roads.

Non-compliance with supply chain management requirements were found at the City of Cape Town and Drakenstein municipalities.

At the City of Cape Town, it related to contract extensions without the necessary approvals.

At Drakenstein, the finding related to the appointment of a supplier by expanding an existing contract with additional work at a different site instead of following a competitive bidding process.

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