Auditor-General says irregular procurement hurting the country

Overall audit outcomes improved in the 2019/2020 financial year, there was still irregular expenditure of over R50-billion within government institutions. eNCA's Heidi Giokos reports.

JOHANNESBURG - Auditor-General Tsakani Maluleke said irregular procurement by government departments is hurting the country's local procurement drive.

She said public servants are still doing business with the government despite rules outlawing it.  

WATCH: AG releases national and provincial audits

Moreover, departments are not disciplined in looking for the most competitive bids.

Officials are also extending contracts that don't make business sense.  

Irregular expenditure by national and provincial government departments has decreased from R66-billion to R54-billion.

118 departments (about 31 percent) failed to disclose their irregular expenditure.

The quality of the performance reports submitted for auditing remained poor, with only 39 percent submitted good-quality reports.

READ: Solidarity Fund distances itself from AG report

Maluleke says for years they've been encouraging Heads of Department to implement audit and IT controls, make credible decisions and improve record-keeping, but it is not happening.

She expressed concern that a number of these entities are in serious financial difficulty and did not submit financial statements for auditing.

Eskom and Transnet are not part of the audit list. The SABC, Denel, the Land Bank and few others are covered.


Paid Content