R45bn spent irregularly

The staggering R45.6 billion in irregular expenditure divulged yesterday by auditor-general Kimi Makwetu shows the “systematic entrenchment of corruption and maladministration in government”.

According to the Organisation Undoing Tax Abuse (Outa), civil society needs to take a stronger stand against corruption and state capture – now more than ever.

“Government is not learning and entities are not being sincere in tackling the problem,” chairperson Wayne Duvenage said. “This is the reason people are getting angry and Sars is suffering in its collections process.”

Makwetu said the 55% increase in irregular expenditure could even be higher as the reported R45.6 billion did not include irregular expenditure in the uncompleted audits.

“Furthermore, 25% of the auditees disclosed that they had incurred irregular expenditure, but that the full amount was not known, while 28 auditees were qualified as the amount they had disclosed was incomplete.”

Makwetu said the significant increase could be attributed overall to continued supply chain management weaknesses.

“An environment that is weak on consequence management is prone to corruption and fraud and the country cannot allow money intended to serve the people to be lost,” he said.

The sectors with the highest irregular expenditure were health at R11.777 billion, transport at R6.378 billion and education at R6.09 billion.

The Passenger Rail Agency of SA recorded irregular expenditure of almost R14 billion last year.

Finance Minister Malusi Gigaba last week in his medium-term budget statemnent said that a revenue shortfall of R50.8 billion is expected for the fiscal year.