South Africa’s municipalities-irregular expenditure more than doubled over the last five years!

52
420

Municipal income for the financial year ended June 2015 climbed to R309 billion, up from R283,5 billion in 2014, according to new data from StatsSA.

The latest municipal financial report showed however, that South African municipalities are more in debt than they were in the previous financial year – with a quarter of all expenses going to salaries.

Municipal liabilities (money owed to service providers, et al) have increased to R196.8 billion, up 11.6% from 2014’s total of R176.4 billion.

The provinces which showed the highest percentage increases between 2014 and 2015 were Free State (40.4%), North West (18.3%), Gauteng (17.2%) and Mpumalanga (13.9%).

The provinces which contributed least to the increase in total liabilities between 2014 and 2015 were KwaZulu-Natal (0.5%), Western Cape (3.9%), Eastern Cape (5.6%) and Limpopo (6.6%).

Liabilities

Despite the increase in municipal liabilities, the country has managed to keep its debt to income ratio at 0.6:1. Municipal income for 2015 amounted to R309 billion.

StatsSA2Looking at municipal expenditure, the biggest operational cost to municipalities is paying employees, which accounts for 25.6% of all expenses. The next biggest cost is electricity, which accounts for 21.7%.

Employee costs increased by R4.4 billion between 2014 and 2015 to R73 billion – the single biggest cost increase of all expenses.

Expenditure

Earlier in June, Auditor-general Kimi Makwetu said that irregular expenditure among South Africa’s municipalities more than doubled over the last five years, to R14.75 billion.

The reason for the increase in irregular expenditure, according to Makwetu, is continued non-compliance with SCM legislation, but also an improvement in the ability of municipalities to detect and disclose current and prior year irregular expenditure in their financial statements.

In 2010-11, 73% of the irregular expenditure was identified during the audit, while in  2014-15 municipalities identified 69% of the irregular expenditure – some using consultants to determine the full extent of irregular expenditure.

Municipalities in North West, Mpumalanga, Eastern Cape and Limpopo were the main contributors to the significant increase in irregular expenditure over the past five years, the AG said.

Fruitless and wasteful expenditure in 2014-15 was more than R1 billion higher than in 2010-11 at R1.34 billion, and was  again incurred by an increasing number of municipalities.

Unauthorised expenditure also increased threefold from 2010-11 to R15.32 billion in 2014-15.

52 COMMENTS

  1. When I initiallyy left a comment I seem to have cllicked on the
    -Notify me when neew coments are added- checkbox and now every time a comment is added I get four emails with
    the same comment. There has to be a way you can remove me froim that service?

    Cheers!

  2. Magnificent gods from you, man. I’ve understand yokur stuff previous to and you’re just too fantastic.
    I actually like what you’ve acquired here, really like what you’re
    saying and the wayy in which you say it. You make it enjoyable and you
    stiill care for to keep it smart. I can’t wait to read much more from you.

    This is really a terrific site.

  3. Hi superb blog! Does running a blog like this take a
    massive amount work? I have very little knowledge of programming howevesr I was hoping
    to start myy own blog soon. Anyways, should you
    have any suggestions or techniques for new blog owners please share.
    I understand this iss off subject but I simply wanted to ask.

    Kudos!

  4. Hmm it appears like your sie ate my first comment (it
    was extremely long) so I guess I’ll just sum
    it up what I had written and say, I’m thoroughly enjoying
    your blog. I ass well amm an asoiring blog blogger but I’m still nnew to the whole thing.
    Do you have any tips and hints for first-time blog writers?
    I’d deefinitely appreciaate it.

  5. Heya i’m for the primary time here. I found this board and I to find It truly useful & it helped mee out a
    lot. I’m hoping to provide something again and aid others
    like you helped me.

  6. I believe that iis among the so much significant information for me.

    And i’m glad reading your article. But wanna commentary on few
    general things, The web site taste is perfect, the articles
    is truyly nice : D. Excellent task, cheers

  7. I like the helpful information you preovide in your articles.
    I’ll bookmark your weblog and check again here frequently.

    I am quite sure I wiull learn many new stufdf right here! Good luck for the next!

  8. Great post. I was checking constantloy this blog and I am impressed!

    Very useful info specially the last part :) I care for such information a lot.

    I was seeking this certain info for a long time.
    Thank you and best of luck.

  9. Hi there, I found your web site by tthe uuse of Google even as loking for a
    comparable subject, you web site came up, it appears to be like good.

    I’ve bookmarked iit iin my google bookmarks.

    Hi there, simply changed into aware of your weblog
    viia Google, and loated that it’s really informative. I am gonna watch out for brussels.I will appreciate in case you proceed this iin future.
    Many people can be benefited from your writing. Cheers!

  10. We absolutely love your bblog and find many off your post’s tto be exactly what I’m looking for.
    can you offer guest writers to write content available for you?
    I wouldn’t mind creating a post or elaborating onn most of the
    subjects you write related to here. Again, awesome web site!

  11. Magnificent items from you, man. I have remember your stuff
    rior to and you’re jujst extremely wonderful.
    I really llike what you’ve obtained here, certainly like what you’re saying and the best wway in which
    you assert it. You are making it entertaining and you still care
    for to stay iit sensible. I can’t wait to learn far more from you.
    This is actually a wonderful web site.

  12. Its like you read myy mind! You see to understand so much apprfoximately this, like
    you wrote the book in iit or something. I believe that you caan do with a
    few percent tto force the message house a
    little bit, howesver inmstead of that, this is fantastic blog.
    A great read. I’ll definitely be back.

  13. Good day very cool blog!! Guy .. Beautiful .. Wonderful ..
    I will bookmark your blog and take the feeds also?

    I am glad to search out so many useful info here in the publish,
    we want develop more strategies on this regard, thank you for sharing.

    . . . . .

  14. My partner and I absolutely love your blog and find a lot of your post’s
    to be just what I’m looking for. Would you
    offer guest writers to write content for you? I wouldn’t mind
    producing a post or elaborating on many of the subjects you write concerning here.
    Again, awesome blog!

  15. I’ve been exploring for a little bit for any high-quality articles or weblog posts on this sort of
    house . Exploring in Yahoo I finally stumbled upon this web site.
    Studying this info So i’m satisfied to exhibit
    that I have a very good uncanny feeling I discovered exactly what I needed.
    I most unquestionably will make sure to do not
    omit this website and provides it a glance regularly.

  16. It is no wonder that they have Koi ponds at their homes as often as we have dogs and cats in our homes.

    D-Mannose is one of the most popular and the
    best remedies for those who are suffering from cystitis or urinary
    bladder infections. All roads should now be leading to the Yosemite National Park in California’s
    Mariposa County.

  17. Hello! Would you mind if I share your blog with my myspace
    group? There’s a lot of people that I think would really
    enjoy your content. Please let me know. Thank you

  18. I aam really loving the theme/design of your blog.
    Do you ever run into any interbet browser compatibility issues?
    A handful of my blog readers have complained about my website
    not working correctly in Explorer but looks great in Opera.
    Do you have any ideas to help fix tgis issue?

  19. Hmm it seems like your site atte my first comment (it wass extremely long) so I guess I’ll just
    sum it up what I submitted aand say, I’m thoroughly enjoying your blog.
    I as well aam an aspiring blog writer buut I’m still
    new to everything. Do you have any points for inexperienced blog
    writers? I’d ertainly appreciate it.

  20. I’m truly enjoying the design and layout of your website.
    It’s a very easy on the eyes which makes it much more
    pleasant for me to come here and visit more often. Did you hire out a developer to create your theme?
    Outstanding work!

  21. Hi would you mind lettinmg me know which web host you’re using?
    I’ve loaded your blog in 3 different web browsers and I must say this blog loas a lot faster
    then most. Can you suggest a good hosting provider at a honest price?
    Kudos, I appreciate it!

  22. Hi exceptional website! Does running a blog similar to this require a lot of work?
    I’ve virtually no expertise in coding however I was hoping to start myy
    own blog in the near future. Anyhow, if youu have any recommendations or tips
    for new blog owners please share. I knjow this iis off topic nevertheless I simply wanted to ask.
    Kudos!

  23. First off I want to say fantastic blog! I hadd a quick question which I’d like
    to ask if you do not mind. I was curious to find out how you center yourself and clear your
    head before writing. I’ve had a difficult time clearing my thouyghts in getting my ideas out there.
    I truly do take pleasure in writing however itt just seems like the first 10 to
    15 minutes tend to be lost simply just trying to figure out how to begin. Any ideas or hints?
    Kudos!

LEAVE A REPLY