KZN, Gauteng lead in unauthorised expenditure

2014-03-20 15:02

KwaZulu-Natal accounted for 41% of all unauthorised expenditure incurred by provincial governments, the SA Institute of Race Relations has said.

North West accounted for the least, revealed figures published recently in The Survey, the institute’s annual yearbook.

Researcher Georgina Alexander said today the figures were for the 2011-2012 tax year and were from information found in the auditor-general’s general report on the Provincial Audit Outcomes, 2011-2012.

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

After KwaZulu-Natal’s R1.2 billion in unauthorised expenditure Gauteng was responsible for 36% of unauthorised expenditure incurred by provinces during the year.

Altogether, provinces had total unauthorised expenditure of about R2.9 billion.

North West did not incur any unauthorised expenditure and Mpumalanga incurred R1.3 million.

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

When it came to irregular expenditure, Gauteng and North West were the big spenders, with Gauteng incurring R4 billion and North West Province R3.96 billion 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 R21.3 billion in irregular expenditure.

Only the Western Cape and Mpumalanga incurred irregular expenditure that was less than R1 billion with R231 million and R457 million respectively.

When it came to fruitless and wasteful expenditure, Gauteng was again the leader of the pack with R228 million in 2011-2012, followed by the Eastern Cape.

These two provinces racked up a little over half the total of R716 million fruitless and wasteful expenditure incurred by provinces.

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

The Western Cape with R5 million and Mpumalanga with R11 million incurred the least in fruitless and wasteful expenditure.

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 over the previous year from R265 million to R1.2 billion.

Its irregular expenditure increased by 92.44% from R1.4 billion to R2.7 billion and its fruitless and wasteful expenditure increased by 675% from R12 million to R93 million.

The Northern Cape saw unauthorised expenditure go up by 74.2% from R66 million to R115 million over the previous year, and irregular expenditure by 36.66% from R1.683 billion to R2.3 billion.

Fruitless and wasteful expenditure increased from R9 million to R39 million.

“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.”

Join the conversation! 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. 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
Comments have been closed for this article.

Inside News24

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


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 network.


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.