The Auditor-General and National Treasury has briefed MPs on the parlous financial state of five municipalities, with the worst-performing municipalities owing a staggering R150 billion.
The four municipalities which contributed to massive irregular expenditure include the OR Tambo District Municipality, Nelson Mandela Bay Metro, Matlosana Local Municipality and the City of Johannesburg.
National Treasury said
National Treasury chief director TV Pillay told MPs that “One hundred and fifty billion rand. Members that is nine zeroes, it’s bad news….R150 billion on the debtor book that is not collected, which means R150 billion not put into infrastructure or services.”
Auditor-General Kimi Makwetu added that municipalities in the Western Cape had performed the best in terms of irregular expenditure, while others, like the City of Johannesburg, were still struggling.
“The City of Johannesburg again another unqualified municipality. It’s never struggled with accounting for transactions the way they should be but when you look at the elements of irregular expenditure, you’ll find some competitive bidding processes not being followed in all instances.”
Additional reporting by EWN.
