Financial Mail : 2020-07-02

AT HOME & ABROAD : 10 : 10

AT HOME & ABROAD

CONTINUE TO REGRESS 20 out of SA’S 257 municipali­ties received a clean audit for the 2018/2019 financial year, on fruitless and wasteful expenditur­e, an increase from the R1.3bn disclosed in the previous financial year according to the auditor-general’s local government audit report R12bn was spent without authorisat­ion 7% (18) 8% (20) 13% (33) 34% of municipali­ties ended the year in deficit, which means their spending exceeded revenue 35% (91) 40% (105) R6.29bn is what the total deficit 45% (114) in local government amounted to R32.06bn is the value 32% (83) of irregular expenditur­e, up from R25.2bn 34% (87) 241 municipali­ties 28% (72) 1% (2) incurred irregular spending 13% (33) 5% (12) 2%(6) 4 provinces - Kwazulu-natal, North West, Western Cape and Eastern Cape - accounted for 71% of the annual irregular expenditur­e. Kwazulu-natal was the top contributo­r 12% (31) 12%(32) 11% (28) 2% (4) 2018-2019 2017-2018 2016-2017 R1.26bn was paid to consultant­s Unqualifie­d with no findings Unqualifie­d with findings Qualified with findings However, of the 183 municipali­ties that used consultant­s, 15 achieved clean audits Adverse with findings Disclaimed with findings Outstandin­g audits x Source: Auditor-general report to parliament . 10 financialm­ail.co.za July 2 - July 8, 2020

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