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AG names municipalities most guilty of massive irregular expenditure

National Treasury said the worst-performing municipalities owed a whopping R150 billion in debt.

Auditor-General Kimi Makwetu briefs Parliament's Standing Committee on the Auditor-General on 25 October 2019. Picture: @AuditorGen_SA/Twitter

CAPE TOWN - The Auditor-General and National Treasury briefed MPs on the parlous financial state of five municipalities.

The top four municipalities which contributed to massive irregular expenditure include the OR Tambo District Municipality, Nelson Mandela Bay Metro, Matlosana Local Municipality and the City of Johannesburg.

National Treasury said the worst-performing municipalities owed a whopping R150 billion in debt.

National Treasury chief director TV Pillay briefed parliamentarians on the financial health of these municipalities.

" One hundred and fifty billion rand. Members that is nine zeroes, it's bad news....R150 billion on the debtor book that is not collected, which means R150 billion not put into infrastructure or services."

Auditor-General Kimi Makwetu added municipalities in the Western Cape had performed the best in terms of irregular expenditure, while others, like the City of Johannesburg, were still struggling.

"The City of Johannesburg again another unqualified municipality. It's never struggled with accounting for transactions the way they should be but when you look at the elements of irregular expenditure, you'll find some competitive bidding processes not being followed in all instances."

Makwetu said his office was still finalising various audits.

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