Auditor-Total Kimi Makwetu.
- The OR Tambo Municipality within the Jap Cape notched up R1.4 billion in irregular expenditure.
- The municipality also squandered conclude to R20 million in fruitless and wasteful expenditure.
- Officials revealed these amounts in Parliament this week.
The unnerved OR Tambo district municipality within the Jap Cape,famend for paying hundreds and hundreds in handwritten invoices for Covid-19 “awareness” campaigns, has racked up conclude to R1.4 billion in irregular expenditure.
This week, municipal officials revealed these figures to Parliament’s portfolio committee on cooperative governance and primitive affairs.
At the pause of June 2019, irregular expenditure amounted to R1.35 billion.
Mayor Thokozile Sokanyile said the reported steadiness emanated from a gap steadiness of R3.1 billion from the 2017/18 financial year.
The municipal council, nonetheless, wrote off R2.7 billion (R2 781 767 097) of the irregular expenditure.
“This was subsequent to the irregular expenditure being investigated and stumbled on to had been incurred for transactions that proved cost for money and income. The municipality region apart an quantity of R229 410 425.75 for administration,” Sokanyile said.
OR Tambo was one of three municipalities where executive’s District Pattern Mannequin had been piloted.
Fruitless and wasteful expenditure amounted to moral over R19 million and unauthorised expenditure to extra than R14 million.
In its 2016/17 audit thought, the municipality bought a qualified audit thought.
Auditor-Total (AG) Kimi Makwetu stumbled on the municipality didn’t relate all its irregular expenditure incurred everywhere in the year as required by the Municipal Finance Administration Act.
Makwetu was unable to resolve the beefy extent of the misstatement for the disclosed quantity of R679.9 million.
In the 2017/18 financial year, Makwetu stumbled on the municipality didn’t adequately recognise its contractual commitments for the acquisition of property, plant and instruments as required by Typically Recognised Accounting Practices (GRAP).
“This was as a result of an absence of systems and processes in location at the municipality to make certain that commitments are precisely disclosed. Consequently, commitments disclosed in relate 46 to the consolidated and separate financial statements had been overstated by R579.3 million for this particular year and in 2016/17 by R936.1 million,” the AG stumbled on.
In the 2018/19 financial year, the municipality didn’t entirely file irregular expenditure.
Sokanyile said the general expenditure related to Covid-19 amounted to R12.7 million.
She said the district had a total of 54 water tankers carting water to areas in need amid the Covid-19 pandemic.
DA MP Cilliers Brink said it seemed there would be no alternate within the municipality’s financial notify.
“The Auditor-Total has cited the municipality for flouting offer chain administration guidelines, failing to amass 82% of client debt, and the frail recount of water and sanitation infrastructure. In the last financial year, the OR district municipality bought its fifth consecutive qualified audit , and nothing supplied to the portfolio committee suggests that things will soon improve,” he said.