NEWS & ANALYSIS

R45bn irregular expenditure disappointing – ANCWL

League calls for govt to put strict measures in place to recover all wasted money

ANCWL statement on government departments and entities irregular expenditure

1 November 2017

The African National Congress Women's League (ANCWL) has noted with disappointment the Auditor General (AG) 2016/17 financial report for the country's national and provincial departments and government entities. Out of a total of 422 departments and government entities that were audited for 2016/17, the AG report cites irregular expenditure of around R45.6bn.

The ANCWL's view is that irregular expenditure by departments and government entities are uncalled for, and are an ignoble departure from the principles of managing state finances effectively and efficiently. It is also an act against building an accountable and transparent government.  Irregular expenditure is an ‘expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including Public Finance Management Act (PFMA) ; or the State Tender Board Act, 1968 or any regulations made in terms of that Act; or any provincial legislation providing for procurement procedures in that provincial government.

The ANCWL condemns non-compliance to section  38(1)(c)(ii) of the PFMA by some accounting officers/accounting authorities and officials in departments and government entities. The ANCWL calls for government to put strict measures in place to recover all the irregular expenditures in departments and government entities. Section  38(1)(c)(i) and  51(1)(b)(i)  of  the  PFMA, which dictates that accounting  officers  or  accounting  authorities  must take  effective  and  appropriate  steps  to  collect  all money  due  to  the  institution, hence  our call that  every  effort  must  be  undertaken  to  recover irregular  expenditure. 

The ANCWL reiterates its call for all government departments and entities to strengthen their financial management systems to curb irregular and wasteful expenditures. Government and its entities must use the limited available resources to eliminate inequality, unemployment and poverty and ensure that all South Africans in particular women and children attain a decent standard of living.

The ANCWL continues to encourage all its supporters and members serving in departments and government entities to be exemplary and fully comply with the financial and performance management prescripts, when executing their roles and responsibilities. 

Issued by Meokgo Matuba, ANCWL Secretary General, 1 November 2017