Increase of irregular expenditure to R167 billion an indictment to Ramaphosa’s failed New Dawn
8 December 2021
The increase of irregular expenditure by 34% to R167 billion, in national and provincial government departments, is the clearest evidence yet that Ramaphosa’s promise of a new dawn has failed to deal with financial malfeasance in government and across State Owned Enterprises.
We now call on the Auditor General (A-G) to use her powers, as contained in the Public Audit Act, to hold offending parties to account by ensuring that there is clear and transparent consequence management. The Act now gives the A-G power to enforce the implementation of recommendations arising from audit outcomes.
According to the audit outcomes released by the A-G, irregular expenditure at national and provincial level increased from R110 billion in the 2019-2020 financial year to R167 billion in the 2020-2021 financial year. That this 34% increase has largely been driven by irregular spending by the National Student Financial Aid Scheme, confirms the escalating corporate governance crisis currently besetting this entity.
Unless a concerted effort is made to appoint competent professionals and implement a sound turnaround strategy, there is a real risk that NSFAS will plunge the Higher Education sector into chaos.