No unauthorised spending in Cape, AG finds

2012-01-16 21:20

Preotoria - Provincial departments and public entities in the Western Cape, Gauteng and KwaZulu-Natal improved their audit outcomes over the past three years, with more than 80% achieving unqualified audit reports.

But while the three provinces had shown sustained improvements, the situation in the remaining six deteriorated over the same period.

This was according to the 2010/11 General Report on National Audit Outcomes released in Pretoria on Monday by Auditor General Terence Nombembe.

The North West regressed during the previous three years while the Eastern Cape, Free State, Limpopo, Mpumalanga and the Northern Cape had "stagnated".

For the 2010/11 year 52% of the North West province's audit reports were qualified, including one disclaimer. According to the report there were still 11 audit reports outstanding. The deadline was September 30 2011.

The Western Cape was the top province with 96% of audit reports being financially unqualified, followed by Gauteng with 94% of audit reports being unqualified, Mpumalanga with 89% and KwaZulu-Natal with 86%.

A clean report is financially unqualified with no findings.

The Northern Cape and the North West were the only provinces where no departments or public entities received clean audits.

A disclaimer is issued when the auditor cannot form an opinion on the financial statements. This can happen where the entity being audited conceals or fails to provide relevant information, is involved in litigation, or if its status as a going concern is threatened.

In the Northern Cape there were three departments or entities that received disclaimers.

According to the report 1 103 investigations were completed or underway during the 2010/11 year. Of these 710 involved fraud while 255 were classified as investigations into "other financial misconduct".

Another 138 related to supply chain management issues within the provincial departments or entities.

The next highest number of investigations was in the Eastern Cape with 250. The North West had the least with only eight such investigations.

The Western Cape was the only province where the auditor general did not find any unauthorised expenditure. In contrast there was R1.43bn worth of unauthorised expenditure in Gauteng.

Of the R16.79bn the auditor general classified as irregular expenditure in all the provinces, Gauteng topped the list with R4.8bn, followed closely by the Eastern Cape with R4.5bn.

In terms of fruitless and wasteful expenditure in the provinces, Gauteng again led the pack with R400m, followed by Limpopo with R225m and the Eastern Cape with R117m.

According to the report human resource management was problematic in all provinces. In provincial government departments about 21% of senior management positions had remained vacant for more than 12 months, while in the provincial public entities the figure stood at 15%.

  • hcduplessis - 2012-01-16 21:32

    of course there was none!!,The D.A is in charge there baby!!!

      craigtjames - 2012-01-16 21:50

      Well done to Western Cape. At least the ANC is getting it right in one province -----OOOOHHHH sorry, no, it's not the ANC it's the DA!!!! Well done Helen Zille and her team of champions.

      sachasea - 2012-01-16 22:34

      Reading news articles like this serves to remind me why I'm happy to live in the Western Cape. Onward and upward...

      ivan.coetzee2 - 2012-01-17 06:49

      No surprises with the DA in the driver seat

      Boer - 2012-01-17 07:43

      Who's in charge??????????

      Bob - 2012-01-17 15:50

      I wonder if Zuma mentioned this in his speech to the masses when he and his buddy's were sipping his French Champagne.

  • lukas2 - 2012-01-16 21:33

    DA run - Not surprising.

      craigtjames - 2012-01-16 22:22

      A deafening silence from some of the usual posters (more specifically Anti-DA supporters)is it not Lucas?

      Sharon - 2012-01-16 22:33

      During election times the ANC gleefully reminded the DA that it had no experience, well, the DA has topped the ANC yet again. Seems there is a clear winner here!!!! I just pray the people from the other provinces realise they are backing the wrong team.

      craigtjames - 2012-01-16 22:44

      Sharon, the problem is loyalty. And how that is ever going to swift, heaven alone knows! (ps - the ANC consistently proves that they still have no experience - even after 18 years in power - ok, they do have experience, but not in the areas where they should have it)

  • Jarryd - 2012-01-16 21:35

    Ironic? :)

  • Gordon - 2012-01-16 21:39

    1 000 000 000 = R1 billion. It would take a slot machine, paying out at R1 per second 33 (THIRTY THREE) years to pay out 1 BILLION RAND. Obscene waste & theft. Most people would understand the left of 1 thousand, a billion cannot even be understood in day to day terms.

      Adam - 2012-01-16 21:58

      Gordon, I see you allowed for leap years in your equation.

      Gordon - 2012-01-17 10:23


  • Wesley - 2012-01-16 21:39

    I bet you the ANC is going to ask for an enquiry. why did this happen?

      Gollum - 2012-01-16 22:34

      Bet the enquiry will concentrate more on how they can smear the Western Cape results than how they can improve the others results

  • michael.e.bowery - 2012-01-16 21:39

    That's because the ANC is not in control of the expenditure, or is too simple an answer?

  • Hennie - 2012-01-16 21:41

    No ANC bungling and corruption = properly run local government. Anybody surprised about that? I'm not.

  • Saksak Motsepe - 2012-01-16 21:43

    This article reminds of another article that said WC has topped matric pass rate at 82% followed by GP at 81%. Check this: "The Western Cape was the top province with 96% of audit reports being financially unqualified, followed by Gauteng with 94% of audit reports being unqualified, Mpumalanga with 89% and KwaZulu-Natal with 86%."

      colin.dovey - 2012-01-16 21:47

      Sour Grapes @Platsak?

      Schalk - 2012-01-16 21:51

      Too much papsak, Motsepe??

      craigtjames - 2012-01-16 21:55

      Saksak, I suggest we do not look at the percentiles here, but what it equates to in money. Ultimately, that is what is affecting the economy (and the poor) in the country. And buddy, look at whom is the poorest of poor. Shame on the ANC

      mystae - 2012-01-16 22:09

      I don't know why you guys are on his case. Saksak's comment is purely objective - there's no bias in any way. If anything, he's just emphasising the awesomeness of the Western Cape.

      Mantsho - 2012-01-16 23:14

      Jealousy is a sin, its better you admit that where the DA govern there is no problem.

      Mikhail - 2012-01-17 00:10

      Ok, that is true. However, factor the irregular and wasteful spending in and then you see the gap widen. R16bn in total!? Construct houses, build schools, give civil servants a bonus but please stop buying yourselves Merc Compressors thank you

      Philip - 2012-01-17 15:44

      the difference between the GP and WC unqualified audit was that in the WC there was no unauthorised / irregular spending........."The Western Cape was the only province where the auditor general did not find any unauthorised expenditure. In contrast there was R1.43bn worth of unauthorised expenditure in Gauteng.

  • Ian - 2012-01-16 21:43

    no anc scum to loot the coffers GO DA

  • Saffa - 2012-01-16 21:49

    Tony Ehrenreich must be puking in his pudding. LOVE IT.

      Jerhone - 2012-01-17 09:09

      Tony has left the building

  • piet.vanzyl - 2012-01-16 21:52

    Tony Ehrenreich, please comment as you always have a lot to say about DA run entities!

  • Richard - 2012-01-16 21:55

    seriously??? why am I NOT surprised!?!?

  • ISO - 2012-01-16 21:59

    One day is one day that the DA will rule this country! the ANC supports will become frastrated of there comrads actions and turn to a party that will provide for them. Well done DA - keep it up!

      mystae - 2012-01-16 22:13

      *The day will come *supporters *frustrated *their *comrades' *choose / vote for Sorry, dis eintlik net die there/their ding wat my oog gevang het, en toe die res.

      ISO - 2012-01-16 22:47

      Dis afrikaanse engels ;)

      mystae - 2012-01-16 22:54

      Affels? :)

      SarelJBotha - 2012-01-17 07:59

      The only party worthy of our support should be those who wish to serve the needs of the country and each man and woman in this country. Those who wish to rule should be executed.

  • MyTruth - 2012-01-16 22:03

    Funny that the only place that the ANC does not control was all in order. THis must be a racist thig because how can the DA get it right? Surely the critics will now say that because of Apartheid, the ANC officials dont have the education to control things and that another disadvantage they have is that th good ANC have overspent their money on important things, like parties and buying fancy homes and cars, because of apartheid. See, if apartheid did not exist, then all the ANC would already have the fancy homes, cars etc, and they would not be excited to have them now! Never will any of the ANC cadres admit that the government are failing their own people, dismally. Thats why Mugabe's Malemas and the like will always have support. It is a case of fooling the majority all of the time.Shame.

      Bronwyn Claridge Bridger - 2012-01-16 22:31

      It's not surprising that the only province run by the DA is the only where unauthorized spending has not occurred... The ANC could take a leaf out of the DA's book on how to run a province & a country! VIVA, DA, VIVA! VIVA, HELEN ZILLE, VIVA!

      theO rAcLe - 2012-01-16 23:15

      Hey Truth.... WELL SAID. HE HE HE

      Jerhone - 2012-01-17 09:15

      it's apartheits fault that i worship money, it's apartheits fault i can only ride in the top of the range car or live in anything other than a palace or care for my poor brothers in the townships DAM THOSE APARTHEIT PEOPLE DAM THEM DAM THEM all to hell

  • velilejonathan.williams - 2012-01-16 22:04

    One would think that the ANC will request the DA to show/train/advice them on how to do the same but I bet my life they will set up an investigative team to investigate the legitimacy and accuracy of the report.

      Lara - 2012-01-16 22:09

      I think your life will be safe.

      Anton Mönnig - 2012-01-16 22:21

      They won't ask advice or investigate, because they couldn't care less about audit reports, ethics or good governance.

  • bredell1 - 2012-01-16 22:05

    ANC will not fit into Western Cape. Not "struggling" enough.

  • domsie2000 - 2012-01-16 22:11

    DA sets the standard :)

  • Jonathan Hol - 2012-01-16 22:16

    I pray for the day that the ANC supporters will see how their elected officials has for the past 20 years failed to deliver on the majority of their promises and actually see the corruption taking place.

  • Blip - 2012-01-16 22:21

    The DA runs a clean ship.

      sachasea - 2012-01-16 22:40

      Cleaner than the ANC's at any rate :)

  • Debbie - 2012-01-16 22:23

    Now there is a shock ... a province with laid down procedures, ethics, standards & protocols ---- God its amazing how it works beautifully together!!!!!

  • Derick - 2012-01-16 22:27

    This is amazing. While the rest of the country is going down because of infighting and tenderpreneuring, there is one province which working like clock work. Congratulations Mrs Zille!

      sachasea - 2012-01-16 22:47

      Yet again the Democratic Alliance's star shines brightest. I hope someone is keeping score! The Western Cape is the jewel in the crown.

      Sharon - 2012-01-17 08:50

      Please dont forget Mrs P de Lille she is just as awesome .........they make a good team

  • Deon - 2012-01-16 22:36

    We , as DA voters , simply rest our case !!! viva DA VIVA !!Maybe ( after frontal lobotomy ) the anc support can see how to govern with prudence !!

  • George - 2012-01-16 22:42

    Dont be fooled by this report. The Western Cape is a relative small economy. Then they cover up much better and get very little done by themselves.The DA is an alliance between the Black Sash where Helen Zille comes from and some other losing parties in a so called democracy. Then think what can happen if we have a democracy. People vote for the DA only because they are desperate for some leadership.

      Selwyn - 2012-01-16 22:50

      No George, we desperate not to have corruption in our government. The black sash helped black people. And we have a bigger economy than you think. Also we don't have to cover up, i can bet you corrution is much bigger in the ANC than in any other party.

      Sharon - 2012-01-16 22:54

      @ George, as an accountant I can tell you there is very little difference between a small and large company's books. The basics stay the same, no matter what the size.

      craigtjames - 2012-01-16 22:56

      George, although they are a relatively small contributor, only 15% of GDP, they have also shown a consistent economic growth of about 3+% which is above the national average. And I have to ask you the question, if they do not do anything, who actually does it? And how do they actually cover up, and what do they cover up. These are irrational allegations buddy? Or are you calling the Auditor General stupid?

      Matthew Patrick - 2012-01-16 22:58

      @Sharon & @George I am an auditor and a breakdown in controls is a breakdown in controls, no matter the size. I've seen small companies open themselves up to millions of Rands in fraud so size doesn't matter. Anyway, Western Cape is the 2nd biggest provincial economy in the country, so please don't bring your cynicism here.

      Burtfred - 2012-01-16 22:58

      Oh George, you silly little ANC sycophant.

      Jacque Raymer - 2012-01-16 23:04

      how false your statement is, cape town is tourist capital of SA, small economy ? and besides, even if they were, which they are not, does size really matter ? the fact is that western cape is better managed, this is fact on paper, and it does say about the DA's ability to lead.

      Matthew Patrick - 2012-01-16 23:06

      I meant George's cynicism not your's, Sharon. Your comment was spot on!

      Matthew Patrick - 2012-01-16 23:10

      Also, George, please don't insult the Black Sash. My grandmother and great aunts were members back in the day and sacrificed a great deal in defending the rights of the black population.

      infijar.ken - 2012-01-16 23:12

      "People vote for the DA only because they are desperate for some leadership." So, are you telling us that people only vote for the ANC because the don't want Leadership?

      pws69 - 2012-01-17 05:54

      George, you really shouldn't eat such a big bowl of stupid in the morning. It ruins the rest of your day. Well done to the DA. We expected it, and you did not disappoint. Next, the country.

      Alfred - 2012-01-17 13:43

      Shame George, don't like hearing the facts then huh? You can carry on closing your eyes, blocking your ears and screaming "Viva ANC viva!" as long as you like but if you ever find yourself needing a quick dose of reality have a look at some other stats about the Western Cape: The WC leads in service delivery - The WC has more flushing toilets than any other province - And the WC has the best housing conditions of all the provinces in SA - I suppose you do have a point though George, people do vote for the DA because they are desperate for some leadership. What does that tell you about your 'glorious' liberation party?

  • TheWatcher - 2012-01-16 22:54

    well done DA! Good start. Now let's just hope the rest of the country can follow suit.

  • chris.booise - 2012-01-16 22:59

    Well done Helen Zille & Patricia de Lille, you guys rock!!

  • Saksak Motsepe - 2012-01-16 22:59

    This article reminds of another article that said WC has topped matric pass rate at 82% followed by GP at 81%. Check this: "The Western Cape was the top province with 96% of audit reports being financially unqualified, followed by Gauteng with 94% of audit reports being unqualified, Mpumalanga with 89% and KwaZulu-Natal with 86%."

  • Getafix - 2012-01-16 23:00

    DA for the win :D Vote for service delivery!

  • Matthew Patrick - 2012-01-16 23:04

    I've been thinking lately that capitalism and 'democracy' are a cyanide pill for each other. Instead of focusing on improving their financial position the ANC will do their best to downplay the Western Cape's success.

  • George - 2012-01-16 23:11

    I dont know who the auditor general is. And what the accountants say. Accountants make and auditors make a living from other bussinesses and are secondary to what the country needs it is not contibuting to growth but dependant on it. My experience is that people in the Cape dont work after 15:00 and projects gets done from Gauteng. There is just no work for proffesionals in the Cape other than to retire there. The ANC is corrupt and if the rest of the country collapses no accountant can save the Cape. No books to audit no wine to drink maybe a few tourists.

      craigtjames - 2012-01-16 23:42

      George, relax dude. You are being emotional. Read my post, WC contributes 15% of GDP, growing at 3.2%. There is a lot of work for professionals in Cape Town, the only problem is, everybody wants to move there because the province is being run properly. So demand is a bit higher than supply.

      Jonathan Hol - 2012-01-17 00:09

      Dear George, I had worked in the Cape for almost a decade and had never left work before 18:00. I know almost all my colleagues were the same. It appears your opinions are subjective and without any substantiation. I would recommend you experience the Cape before you slander it.

      Quinton Ferreira - 2012-01-17 00:36

      living in your own world there, aren't you?

      pws69 - 2012-01-17 06:18

      Buddy, like I said earlier, that big bowl of stupid you eat for breakfast each day is seriously affecting what little credibility you might have had. But I can see your (ANC) line of thinking. It follows something like this, over the last 17 years: The DA can't run anything, they can't govern the country. The DA are only good at running a small municipality, they can't govern the country. The DA can only run one Metro, they can't govern the country. The DA can only run one province, they can't govern the country. Anyone else noticing a trend here? :-) BTW, GEORGE: Best run municipality in the country - DA Best run Metro in the country - DA Best run province in the country - DA Highest employment growth in a province - DA Cleanest municipality in the country - DA Noticing any trends there as well, hey GEORGE!

      Jason Children - 2012-01-17 06:19

      George, we work hard in the Cape. I finish work at 19h00 most evening and work most weekends. the difference is that we know how to slow down and appreciate what we have every now and again. all work and no play makes George a sour boy!

      richard.hipkin - 2012-01-17 10:41

      @George, sounds like you jealous...

  • Grant - 2012-01-16 23:12

    The ANC trolls arevery quiet on this report. They could at least blame apartheid. The ANC inherited sound governance in 1994 but what they do? Replaced honest, experienced officials with dishonest cadres. I've given up hope of there being a solution.

      Matthew Patrick - 2012-01-16 23:15

      The problem is that the news of this report won't reach most ANC supporters or they'll be ignorant of it. It'll be way over the uneducated masses' heads!

      George - 2012-01-16 23:28

      Hi you have it all wrong. It so happens that the Western Cape only survived because the voting borders defined by the ANC and through a bit of alliance the DA won. So watch this space soon the Cape voting borders will be redifined and no Zille. Thats what happened with the rest of the country. The reason why it happened FW and Roelf can maybe explain. All I am saying everybody is so happy with Zille but she probably was the biggest fighter for what we are in. If the Cape grows so well at least the crime is going to follow.

      craigtjames - 2012-01-16 23:45

      George, what in the world is your point. Please face the facts here, not what you THINK. Everybody THOUGHT the ANC was going to supply jobs, cars, houses and everybody was going to live happily ever after in LALA land. It is not happening. The only thing real here is the statistics which has proven the WC to be superior in most aspects than any province run by the ANC.

      PaasHaas - 2012-01-17 06:52

      @ George, I'm not following your logic here but the way I attempt to understand it, you would far prefer that the Western Cape lowers its standards to the same brillant levels set by the Eastern Cape, Mamparalanga or Limpompo rather than be a beacon of hope to which the rest of the country can emulate. Something along the lines of rather ANC, pathetic and useless than DA.

  • George - 2012-01-17 00:00

    To craigtjames I want to say what difference does it make if the WC looks good on a piece of paper. Eskom Telkom SARS SAPS SANDF No rugby cup what are you going to do about that. No bursaries for students. Statistics depends on nrs. But at least got some people thinking i hope.

      craigtjames - 2012-01-17 00:14

      George, Statistics is the study of the collection, organization, analysis, and interpretation of data - or as you call it numbers. Where does it come from - the people and factual information - and in this case the people and factual information of the Western Cape and what they do. Maybe Eskom, Telkom, SARS etc would have done better if they were run from out WC. They not doing so well at the moment buddy. But many private institutions' Head Offices are run from the WC. And the private sector is not doing badly now, is it?

  • Deeteem - 2012-01-17 05:21

    Something seriously wrong with this report !! Gauteng with 94% of audit reports being unqualified yet they lead the lists of both irregular and wasteful and fruitless expenditure ???

      craigtjames - 2012-01-17 06:47

      Im not sure if I understand the article correctly, but the rest (6%) lead to the various amounts they are talking about. I gather the budgets for Gauteng, being the largest contributor to GDP, must be relatively higher in Rands, therefore the larger amounts we see here. I am not sure whether this is what you are referring to Deeteem?

  • Brandon - 2012-01-17 06:02

    Dear ANC. Please distribute the paper this article will appear in to all your supporters in the the rural areas where they are deprived of news papers and the media alike. Or...cut out the clipping and recite it at your next rally. Im sure it will help this country get tracked in the right direction!

  • Jason Children - 2012-01-17 06:13

    well done DA, this is proof that my vote counts!

  • Siyanda - 2012-01-17 07:14

    You see. This is where we all can help the people. I am going to make copy's of this article and start handing them out. We all can do this and start educate the people on what good the DA is doing and I am going to do this with all the negative articles of the ANC. We must start doing something and stop just complaining.

  • Gary - 2012-01-17 07:31

    Ok, so all the other provinces have unauthorised spending.......what's going to be done about it???

  • Ivan - 2012-01-17 07:41

    ANC = Anarchy, Nepotism, Corruption

  • SarelJBotha - 2012-01-17 07:58

    Clearly the ANC controlled places are like always the worst and it seems it will never change. It is time that that party, which is a citizen of the republic, be penalyzed for it's criminality in terms of the laws of the republic. Government is also a citizen of the republic and they should be treated the same as any other citizen as far as the law is concerned.

  • Mike - 2012-01-17 08:55

    Zille and De Lille Power! African National Corruption are you taking notes? What happened to "Together we can do more" and fighting corruption? Oh I forgot - together we can do more to enrich ourselves!

  • Katlego - 2012-01-17 09:45

    is information like this that people should consider before they vote

  • nyirendamd - 2012-01-17 12:21

    Congrats DA for this good record - NO Unauthorised Spending! Thumbs up to Hellen & your team. Mr President JZ, you can learn from this. Need to ensure your team in the other provinces should aim to get to this - No unauthorised spending. To Hellen, Aim for my province now - Northern Cape or target EC. With good planning and proper support, you can get 1 of these. Maybe they can also read - No unauthorised spending in the AG's future audit. Great work Hellen and Team. Keep it up

  • ludlowdj - 2012-01-17 13:07

    I can hear the ANC moaning about the RACIST Auditor General already. Well done to the DA, I can see a lot of Durbanite's giving up their their homes in the countries most expensive municipality to move to the Cape which not only offers cheaper living but a wealth of cultural events which never make it to Durb's anyway.

  • Chappies ZA - 2012-01-17 20:48

    Double thumbs up to Cape Towns ruling party!!

  • jeffrey.d.walker.9 - 2012-11-28 12:23

    To all the many people who like playing the Race card to blame whites for being Racist and who are so anti white, I see only black people being racist in their remarks. Remarks against the ANC or indeed Zuma, is not being racist, it's free speech being practiced against a generally corrupt racist Government. My take is; I am not racist but AM VERY ANTI COMMUNIST there is a great difference, as Socialism has never succeeded anywhere in the world, and will not work here, we will just get poorer, more unemployment, more poverty and always blaming Apartheid( which ceased 20 years ago)what happens now is on the Heads of the present ANC led Government who don't honour our Constitution and keeps using their large black majority to change the laws and constitution to suite themselves as corrupt Politicians and not the Country AS A WHOLE. A case in point being the Secrecy bill.

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