Annual Reports reveal more than R50 billion in Irregular, Fruitless and Wasteful Expenditure
12 October 2017
An evaluation of those annual reports submitted to Parliament by national departments and their entities have revealed that R51.1 billion was wasted in the 2016/2017 financial year as a result of Irregular and Fruitless and Wasteful Expenditure.
Entities were the biggest offenders, accounting for nearly R35.9 billion, or R70%, of the total.
This staggering amount is sure to increase as the departments of Environmental Affairs, Defence, and State Security have still not tabled their annual reports. Similarly, South African Revenue Service, South African Airways, South African Express, South African National Roads Agency, and Passenger Rail Agency of South Africa have not finalised their annual reports.
Audit results of departments and entities were once again dismal with no fewer than 22 outstanding audit reports, as well as a litany of disclaimed (3), adverse (4) or qualified (28) audit opinions. More than 20% of all audits were either outstanding or failed to meet accounting standards.