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These government departments waste the most money – Auditor-General | Fin24

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Auditor-General Tsakani Maluleke.


Auditor-Common Tsakani Maluleke.

  • The Auditor-Common mentioned 21 of the federal government’s 41 nationwide departments constantly incurred fruitless and wasteful expenditure previously 5 years.
  • Materials irregularities at nationwide departments brought about an estimated monetary lack of R8.6 billion over the previous 5 years.
  • The Division of Defence, Nationwide Treasury, and the Division of Primary Schooling incurred the very best fruitless and wasteful expenditure. 
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The Auditor-Common (AG) of South Africa warned the legislature that half of the federal government’s nationwide departments constantly incurred fruitless and wasteful expenditure over the previous 5 years. 

Briefing Parliament on Friday, the AG warned that 21 of the federal government’s nationwide departments constantly incurred fruitless and wasteful expenditure previously 5 monetary years, in contravention of the Public Finance Administration Act (PFMA).

Among the many authorities’s 157 departments at a nationwide, provincial, and native authorities degree, 64 are in good monetary well being, whereas the monetary well being of 79 departments is “of concern”, and 14 require pressing intervention.

Departments requiring intervention account for R130 billion of presidency spending within the 2020/21 monetary 12 months. These departments whose monetary well being was of concern accounted for R850 billion in spending. 

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The workplace of the AG’s written submission to Parliament’s Standing Committee on Appropriations mentioned over the previous 5 years, R1.52 billion in fruitless and wasteful expenditure was incurred by 41 departments.

“When it comes to spending, 21 of 41 nationwide departments, or 51%, incurred fruitless and wasteful expenditure for the previous 5 years,” the workplace submitted to Parliament.

The Division of Defence incurred the very best cumulative fruitless and wasteful expenditure over the five-year interval, at R460 million, adopted by Nationwide Treasury at R339.4 million and the Division of Primary Schooling at R106.8 million.

The quantum of fruitless and wasteful expenditure by authorities departments has constantly stayed above R100 million for the previous 5 years however surged to a excessive of R625.9 million within the 2017/18 monetary 12 months. By 2020/21 it had settled again down, albeit at R199.9 million.

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The submission mentioned materials irregularities – a separate class to fruitless and wasteful expenditure – delivered to the eye of accounting officers and authorities at nationwide departments brought about an estimated monetary lack of R8.6 billion over the previous 5 years. 

To make issues worse, the AG discovered underspending in important programmes, specifically human settlement growth, colleges backlog, and well being facility revitalisation.

“[The AG] will proceed to have interaction oversight committees as a part of the budgetary evaluation and suggestions report course of, sharing insights on points that have an effect on service supply and place strain on the fiscus, and that require oversight and intervention,” the submission mentioned.

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