Staggering R5 billion in irregular expenditure will hurt poor South Africans
Today’s Auditor-General (A-G) briefing on the audit outcomes of the health sector for the 2014/15 financial year revealed a shocking 442% increase in irregular expenditure in a mere 12 months. “Expenditure in contravention of key legislation” increased from R941,269,000 in 2013/2014 to R5,100,138,000 in 2014/2015. Such wasteful expenditure is shocking when there currently exists an insufficient supply of ambulances, health practitioners and properly equipped facilities.
The DA will request that the Standing Committee on Public Accounts (SCOPA) investigate this unacceptable state of affairs as soon as possible.
Despite the A-G repeatedly condemning the lack of political leadership and timely responsiveness with regard to improving audit outcomes; year after year, the department has failed to act within the framework of the Public Finance Management Act (PFMA) to ensure the timely provision of quality information and to eliminate the wasteful use of public money and resources.
According to the A-G’s briefing, a staggering total of R319 million in “fruitless and wasteful expenditure” by provinces was recorded in 2014/2015 with the Gauteng and Eastern Cape provinces wasting R159 million and R74 million respectively. Moreover, during the same period, the total unauthorised expenditure reached R594 million, with KwaZulu-Natal and North West provinces being the largest contributors at R127 million and R262 million respectively.
Such gross and negligent spending by provincial health departments is an affront to communities who depend on the government for treatment when they become ill.
The DA-run Western Cape demonstrated the excellent quality of DA governance, with “unauthorized expenditure” and “fruitless and wasteful expenditure” amounting to zero respectively. The A-G's briefing also revealed that the Western Cape recorded the lowest figure in irregular expenditure.
This demonstrates the DA difference where we govern. We want to deliver quality health services to more and more places across South Africa.
South Africans deserve access to quality healthcare across the entire country. When ANC-led provincial governments waste money in this way they hurt the poor, and prevent quality treatment. The DA will do everything possible to ensure that this is brought to an end, so that every person can live a life they value.
Issued by Heinrich Volmink, DA Shadow Deputy Minister of Health, 13 October 2015
