Transnet, SAA, SAPO top list of SOEs with the most irregular & wasteful expenditure - AG
The Auditor-General said that in the last five years, 27 SOEs had incurred R67 billion in irregular expenditure as well as R2 billion in fruitless and wasteful expenditure but with very little consequence management.
The South African Post Office. Picture: Ashraf Hendricks/GroundUp
CAPE TOWN - The Auditor-General said that Transnet, South African Airways (SAA) and the South African Post Office (SAPO) had incurred the most irregular and wasteful expenditure out of all SOEs.
The Auditor-General said that in the last five years, 27 SOEs had incurred R67 billion in irregular expenditure as well as R2 billion in fruitless and wasteful expenditure but with very little consequence management.
The Office of the Auditor-General told the Standing Committee on Appropriations on Tuesday, that in terms of government departments, defence and basic education were the top two offenders.
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Head of audit, Bongi Ngoma said that irregular expenditure in SOEs had shown an alarming trend, with almost R70 billion incurred in five years.
She also noted the top offenders when it came to fruitless and wasteful expenditure.
"The number, as noted on the slide, translates to about R2 billion for 27 SOEs and the top ten is listed there in the slide. Of course, leading the pack being the South African Post Office followed by the SABC."
Ngoma said that there was a culture sitting behind the numbers.
"Which is a culture of a lack of accountability towards the prudent usage of scarce resources."
The committee said it had already requested meetings with some of the big offenders, like the SABC.