Daily Dispatch

Money wasted in health, education

- By ZINE GEORGE

AUDITOR-GENERAL Kimi Makwetu has listed the Eastern Cape department­s of health and education as among the country’s worst culprits when it comes to wasting money.

They blew more than R1.1-billion in fruitless and wasteful expenditur­e in the 2013-14 financial year, according to an audit report Makwetu tabled in Cape Town on Wednesday.

The Eastern Cape’s education department “wasted” R69-million while the health department wasted R51million.

Fruitless and wasteful expenditur­e is incurred when the state has to pay interest on overdue accounts and late payments, as well as penalties and payments for litigation costs and claims.

The education department received R26.5-billion while health received R16.5-billion.

Topping the list countrywid­e for incurring the wasteful and fruitless expenditur­e was Minister Nosiviwe Mapisa-Nqakula’s department of defence, which wasted R304-million. This was followed by Limpopo’s department of education (R168-million) and Gauteng’s health department (R16- million).

But these recent figures are a remarkable improvemen­t compared to the previous year ending in March last year, when the auditors discovered R2.4-billion in wasteful and fruitless expenditur­e.

The Daily Dispatch reported yesterday that Makwetu was very concerned that reckless spending patterns were being practiced by department­s which received the biggest budgets from government.

He also fingered the Eastern Cape province as one of the four provinces, along with Gauteng, KwaZulu-Natal and Gauteng, for being responsibl­e for irregular expenditur­e of more than R10-billion during the 2013-14 financial year.

He also highlighte­d weaknesses in the internal audit, especially with regard to supply chain management. “Leadership had to correct internal controls. Skilled people had to be brought in to improve financial and performanc­e management. Audit committees were failing because the right controls were not in place. The quality of submitted financial statements was a risk area,” he said. —

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KIMI MAKWETU

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