R75.6bn wasted on irregular expenditure at state entities and departments

R75.6bn wasted on irregular expenditure at state entities and departments

- Government expenditure could be as much as R72.6 billion this year

- The DA has released a list of government entities with the highest wasteful expenditures

- It could be even higher, as the DA expects it to be 70% more than last year, once all the departments and entities have finalised their financial reports

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A DA report has revealed that state departments and state owned entities (SOE) have R75.6 billion in irregular expenditure.

On Sunday, during a media briefing, the DA cited 2017/18 financial reports, which were released by state departments and state owned businesses.

What is irregular expenditure?

Irregular expenditure is the mismanagement of funds. It's mainly used to describe mismanagement of funds within government.

According to The South Africa, any expenditure which involves government funds that fall outside the parameters of the Public Finance Management Act can be described as irregular expenditure.

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The DA claims irregular spending could be a lot higher in total.

The DA's Shadow Minister of Public Enterprises, Natasha Mazzone, said not all government departments and SOEs finalised their financial reports.

This means the actual amount of irregular expenditure could be much higher, Briefly.co.za learned.

Last year, it's believed the total irregular expenditure within government was R42.8 billion. It's believed this amount is about 70% more this year.

Mazzone lamented the SEO's unsustainability. She said despite government's revitalisation strategies, most companies are incompetent and still rely on bailouts from the state.

“SOEs are going from one bailout to the next, one disaster to the next. It’s got to a point where it doesn’t matter who you put in the boards because the entities are so broken, it is almost impossible to fix.”

Who are the main culprits of government's massive irregular expenditure?

Since the DA's briefing, the opposition party revealed a list of entities that have the biggest losses:

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1. Eskom – 19.6 billion

2. South African National Roads Agency (SANRAL) – R10.5 billion

3. Transnet – R8.1 billion

4. Department of Water and Sanitation – R6.2 billion

5. South African Broadcasting Corporation (SABC) – R5 billion

6. Water Trading Entity – R4.9 billion

7. Department of Correctional Services – R3.2 billion

8. Property Trading Management Entity (PTME) – R2.3 billion

9. Department of Basic Education – R1.7 billion

10. Department of Defence – R1.7 billion

11. Department of International Relations and Cooperation (DIRCO) – R1.2 billion

12. South African Social Security Agency (SASSA) – R1.7 billion

13. South African Post Office (SAPO) – R1 billion

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Source: Briefly.co.za

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