Auditor-Long-established Kimi Makwetu.
- The OR Tambo Municipality in the Jap Cape notched up R1.4 billion in irregular expenditure.
- The municipality also squandered near R20 million in fruitless and wasteful expenditure.
- Officers published these amounts in Parliament this week.
The shy OR Tambo district municipality in the Jap Cape, smartly-known for paying thousands and thousands in handwritten invoices for Covid-19 “consciousness” campaigns, has racked up near R1.4 billion in irregular expenditure.
This week, municipal officers published these figures to Parliament’s portfolio committee on cooperative governance and outdated affairs.
On the end of June 2019, irregular expenditure amounted to R1.35 billion.
Mayor Thokozile Sokanyile acknowledged the reported steadiness emanated from a gap steadiness of R3.1 billion from the 2017/18 financial yr.
The municipal council, on the different hand, wrote off R2.7 billion (R2 781 767 097) of the irregular expenditure.
“This was once subsequent to the irregular expenditure being investigated and learned to were incurred for transactions that proved payment for money and attend. The municipality space apart an quantity of R229 410 425.75 for consequence administration,” Sokanyile acknowledged.
OR Tambo was once one of three municipalities the put executive’s District Improvement Mannequin had been piloted.
Fruitless and wasteful expenditure amounted to accurate over R19 million and unauthorised expenditure to extra than R14 million.
In its 2016/17 audit idea, the municipality bought a certified audit idea.
Auditor-Long-established (AG) Kimi Makwetu learned the municipality did not expose all its irregular expenditure incurred all thru the yr as required by the Municipal Finance Management Act.
Makwetu was once unable to settle the fat extent of the misstatement for the disclosed quantity of R679.9 million.
Within the 2017/18 financial yr, Makwetu learned the municipality did not adequately recognise its contractual commitments for the acquisition of property, plant and tools as required by Basically Recognised Accounting Practices (GRAP).
“This was once attributable to an absence of programs and processes in space on the municipality to be definite that commitments are accurately disclosed. This skill that, commitments disclosed in uncover 46 to the consolidated and separate financial statements were overstated by R579.3 million for this narrate yr and in 2016/17 by R936.1 million,” the AG learned.
Within the 2018/19 financial yr, the municipality did not fully myth irregular expenditure.
Sokanyile acknowledged the complete expenditure related to Covid-19 amounted to R12.7 million.
She acknowledged the district had a total of 54 water tankers carting water to areas in need amid the Covid-19 pandemic.
DA MP Cilliers Brink acknowledged it looked there would be no switch in the municipality’s financial bother.
“The Auditor-Long-established has cited the municipality for flouting provide chain administration regulations, failing to procure 82% of user debt, and the frail train of water and sanitation infrastructure. Within the final financial yr, the OR district municipality bought its fifth consecutive qualified audit consequence, and nothing presented to the portfolio committee suggests that issues will soon strengthen,” he acknowledged.