No action over spending ‘leaks’
AUDITOR-GENERAL Kimi Makwetu has found that some water boards have not taken action against officials responsible for more than R445 million incurred in irregular expenditure in the 2017-18 financial year.
Makwetu revealed this in the audited financial statements contained in the boards’ annual reports tabled in Parliament.
The audit reports showed that none of the boards was immune from flouting the Public Finance Management Act (PFMA) and National Treasury regulations.
On Rand Water, Makwetu said he was unable to obtain sufficient appropriate audit evidence that some quotations were accepted as per legislation.
Rand Water disclosed R117m in irregular expenditure was incurred.
“No material cases of criminal conduct have been recorded for the year,” reads its report.
Makwetu said Bloem Water incurred R1.1m in irregular expenditure.
He said effective steps were also not taken to prevent R801 000 in irregular expenditure at Magalies Water.
The auditor-general also found no effective steps were taken to prevent R32.9m in irregular expenditure at Umgeni Water.
“The majority of the irregular expenditure disclosed in the financial statements was caused by payment of performance bonuses not made in terms of approved policy.”
Umgeni Water said disciplinary steps were not instituted because the expenditure was incurred in support of business requirements.
Makwetu revealed that Sedibeng Water did not include the required information on irregular expenditure in the financial statements required.
“Payments made in contravention of the supply chain requirements were not adequately and completely disclosed, resulting in irregular expenditure being understated by R21m.”
He said Mhlathuze Water was also found to have not prevented irregular expenditure. Mhlathuze disclosed R264 763 000 in overall irregular expenditure with R64 520 000 being incurred in 2017-18.
The auditor-general said Lepelle North Water incurred R10 038 000 in irregular expenditure.
“This was due to goods and services not procured through proper procurement process.”
The auditor-general said Amatola Water disclosed R18.7m in irregular expenditure, but its report showed the overall amount was R132m, inclusive of previous years.
Amatola Water said it investigated causes of irregular expenditure and disciplinary and criminal charges were laid where investigations were finalised.
Overberg Water did not submit its financial statements for auditing.
Payments made in contravention of supply chain requirements were not adequately disclosed
Kimi Makwetu Auditor-general