fin24,
The Auditor-General (AG) and National Treasury clearly keep records of municipal financial affairs, but decline to say how much wasted money is recovered from those responsible - that while municipal regulations enforce recovery.
It would seem that neglect to do so is shrugged off.
In its recent report on municipal finances from 2006/07 to 2012/13 Treasury clearly set out how city councils should handle unauthorised, irregular, fruitless and wasted expenditure.
Unauthorised spending may be permitted under certain circumstances. Irregular, fruitless and wasted costs may under no circumstances be sanctioned.
Unauthorised spending that is not subsequently sanctioned, as well as irregular, fruitless and wasted expenditure must be recovered from those responsible unless, after an investigation by a council committee, the council should declare it irrecoverable.
In practice this means the following: in the 2009/10 financial year, for instance, municipalities spent R5bn without authorisation. Only R1.1bn was authorised or written off.
A total of R4.14bn was irregularly spent, R77m of which was written off.
There was a total R189m fruitless and wasted expenditure, only R1m of which was written off.
Municipalities should therefore have recovered the balance - more than R8bn - from the responsible parties. This equals about a quarter of the cost of the Gautrain project.
Enquiry has revealed that Treasury has no record of this R8bn being recovered. Read more ...
The Auditor-General (AG) and National Treasury clearly keep records of municipal financial affairs, but decline to say how much wasted money is recovered from those responsible - that while municipal regulations enforce recovery.
It would seem that neglect to do so is shrugged off.
In its recent report on municipal finances from 2006/07 to 2012/13 Treasury clearly set out how city councils should handle unauthorised, irregular, fruitless and wasted expenditure.
Unauthorised spending may be permitted under certain circumstances. Irregular, fruitless and wasted costs may under no circumstances be sanctioned.
Unauthorised spending that is not subsequently sanctioned, as well as irregular, fruitless and wasted expenditure must be recovered from those responsible unless, after an investigation by a council committee, the council should declare it irrecoverable.
In practice this means the following: in the 2009/10 financial year, for instance, municipalities spent R5bn without authorisation. Only R1.1bn was authorised or written off.
A total of R4.14bn was irregularly spent, R77m of which was written off.
There was a total R189m fruitless and wasted expenditure, only R1m of which was written off.
Municipalities should therefore have recovered the balance - more than R8bn - from the responsible parties. This equals about a quarter of the cost of the Gautrain project.
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