State owes AG R400 million

2011-09-20 08:49

Government departments and entities owe the Auditor-General (AG) Terrence Nombembe about R400 million in unpaid debt for audits done in 2010/11.

Municipalities are the biggest debtors and owe the AG more than R167 million, followed by provincial governments with more than R107 million.

Since November, Nombembe has instituted legal actions against some of the defaulting municipalities in North West, Northern Cape and Free State but only collected R13 million.

Sheriff’s letters were served on the defaulting municipalities, however, the AG missed its target of collecting R58 million.

National government owes R50 million, according to the AG’s 2010/11 yearly report.
More than R225 million of the amount is current debt while R81 million has been outstanding for up to four months.

Another R84 million has not been paid for over four months and unlisted public entities, staff debtors, municipal entities, utility agency corporations owe R19 million.

The R400 million debt is up from R370 million in the 2009/10 financial year.

The AG conducts audits for 944 state entities including national and provincial governments, the country’s 283 municipalities, parastatals and other state-owned entities. It made a R133 million surplus in its R1.8 billion income for 2010/11.

The AG also paid R3.6 million last year to contribute towards the salaries of accounting department lecturers at the University of Fort Hare.

Nombembe’s spokesperson Africa Boso said there was continuous engagement with the National Treasury, the cooperative governance and traditional affairs department and provincial governments to assist in collecting outstanding debt.

Senior AG officials also request the outstanding payments from the municipalities during their quarterly visits.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.