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KZN unauthorised expenditure jumps 352%

Durban - KwaZulu-Natal showed a 352% increase in unauthorised expenditure over the previous year from R265m to R1.2bn, according to the SA Institute of Race Relations.

This was revealed in The Survey, the institute's annual year book.

The figures were for the 2011/12 tax year, said researcher Georgina Alexander.

It came from information found in the auditor general's General Report on the Provincial Audit Outcomes for 2011/12.

Unauthorised expenditure

KwaZulu-Natal accounted for 41% of all unauthorised expenditure incurred by provincial governments.

Alexander could not say whether any of the expenditure incurred on President Jacob Zuma's Nkandla residence was included in these figures.

KwaZulu-Natal's R1.2bn in unauthorised expenditure was followed by Gauteng.

Altogether, provinces had total unauthorised expenditure of some R2.9m.

The North West did not incur any unauthorised expenditure while Mpumalanga incurred R1.3m.

Unauthorised expenditure means overspending on the amount that was previously agreed to by Parliament.

Irregular expenditure

When it came to irregular expenditure, Gauteng and North West were the big spenders.

Gauteng incurred R4bn and North West Province R3.96bn in irregular expenditure.

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, the requirements of any applicable legislation.

In total, provinces incurred R21.3bn in irregular expenditure.

Only the Western Cape and Mpumalanga incurred irregular expenditure that was less than R1bn with R231m and R457m respectively.

Fruitless and wasteful expenditure

When it came to fruitless and wasteful expenditure, Gauteng was again the leader of the pack with R228m followed by the Eastern Cape.

These two provinces racked up a little over half the total of R716m fruitless and wasteful expenditure incurred by provinces.

Fruitless and wasteful expenditure is defined as expenditure which was made in vain and would have been avoided had reasonable care been exercised.

The Western Cape with R5m and Mpumalanga with R11m incurred the least in fruitless and wasteful expenditure.

All three categories

KwaZulu-Natal and the Northern Cape saw an increase in all three categories over the previous year.

KwaZulu-Natal showed a 352% increase in unauthorised expenditure, irregular expenditure increased by 92.44% from R1.4bn to R2.7bn and its fruitless and wasteful expenditure increased by 675% from R12m to R93m.

The Northern Cape saw unauthorised expenditure go up by 74.2% from R66m to R115m over the previous year, and irregular expenditure by 36.66% from R1.683bn to R2.3bn.

Fruitless and wasteful expenditure increased from R9m to R39m.

"The amount of money that is wasted due to unauthorised, irregular, and fruitless and wasteful expenditure is cause for grave concern," said Harris.

"This money has the ability, if spent properly, to raise the living standards of thousands of people across South Africa."
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