Fin24

SA councils misuse R13bn

2010-06-27 08:56

Pretoria - A whopping R13bn – this is the sum that municipalities wasted or failed to spend in their previous financial year.

The wastage and poor management are evident in the qualified audit reports that by far most municipalities have received from the auditor-general (AG).

The amount is equal to the annual budget of the department of justice, or it could finance half a Gautrain.

About R5bn of the R13bn is owing to exceptional distribution losses in water and electricity, write-offs of consumer debt and fraud.

More than half of these losses occurred in Johannesburg, Ekurhuleni and Mogale City.  With the announcement of the consolidated report on municipalities' audited results AG Terence Nombembe said there was an evident, although slight, improvement in the financial management of municipalities for the 2008/09 financial year compared with those for 2004/05.

Although the number of qualified and unfavourable audit opinions - as well as opinions withheld - declined sharply from the previous financial year, only four municipalities in the country received clean audit reports. This is the same number as in the previous financial year.

The four are Johannesburg, Cape Town, the Kareeberg and the Frances Baard district municipalities in the Northern Cape.

 - Sake24.com

Comments
  • nosferatos - 2010-06-27 09:12

    Well my old domestic came one day and said that they going to cut her electricity because she has never paid for it and the amount was total of R27000 they wrote it off as she was a domestic and she only had to pay R1900. Thats why they making losses if these people can pay for it they need to be capped at what they can afford.

  • Eksoekook - 2010-06-27 10:44

    Somehow this has become the norm and we expect nothing less. Our goverment is stealing us blind by allowing this to happen and even partaking in it. This country is a joke with those corrupt officials allowed to continue stealing and the tax payers (VAT, Income, municipal, etc, etc, etc) just having to pay more and more and the corrupt goverment and their cronies becoming richer. On the count of three, ley's all laugh...

  • Ben - 2010-06-27 11:49

    Expect it to become worse! There are many more morons that want to plunder before they are caught and pampered to leave.

  • Pete - 2010-06-27 15:12

    WOW

  • Leonard - 2010-06-28 07:20

    Thats not surprising, the goverment and its officials have their interest in themselves then the community. this is the only beggiing of even great losses to come. wait then for the world cup to end.

  • Dc2448 - 2010-06-28 08:53

    While the waste and corruption is just another norm to African, and would be a joke if it wasn't so serious, but the reality is this is how well Affirmative Action and BBBEE is actually working. Just one great example after another and nothing gets done about it. It seems that the ANC just turn a blind eye, and see it as a redistribution of wealth strategy = how long can a country survive?

  • UK - 2010-06-28 10:10

    The UK is no rosier. In South Africa its fraud and mismanagement, in the UK its all about hands-outs. 25% of non-working people in the UK have not worked for nine years or more and are living off the state. Some families are getting housing allowances equivalent to more than R16,000 per month! The UK and other 'developed' countries have problems just like SA, in some cases their problems will not be solved in our life time. There is no Utopia. That is why the UK has such huge debt. All governments are corrupt. Period.

  • Rediculous - 2010-06-28 10:46

    This lovely country of ours is becoming a joke because our so-called government don't want to or refuse to catch a wake-up. It is just going from bad to worse and soon we will be in a position where it will be beyond repair...which I doubt our government officials realise that it includes them...

  • Trinity - 2010-06-28 13:00

    Not surprising at all, this is the new BEE SA

  • Kiwibok - 2010-06-28 13:30

    @ UK, you are wrong my friend. NZ government is not corrupt. It is serving its people, unlike africa where the government is expected to be served. We done SA and ANC!! That's propbably why Zuma is calling on IMF te reform. what a joke. He can even keep his pants on, but he is calling on IMF to reform.

  • Realist - 2010-06-28 16:41

    You are very naive if you believe that there is a government that is not corrupt...The difference between us and New Zealand for e.g is that they deliver & they don't make it so obvious that they are milking the state. Politicians are crooked and corrupt the world over... Just that some are more tactful than others.

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