Auditor General Kimi Makwetu says 25.5 billion has been lost by municipalities in irregular expenditures in the 2017-2018 financial year.
This is down compared to the 29 billion from the previous financial year.
Makwetu says out of the 257 municipalities’ country wide that were audited only 18 of those managed to get clean audits.
12 of the 18 who managed to get clean audits were from the Western Cape.
Makwetu says from now on, recommendations made to municipalities will be treated as binding and a certificate of debt may be issued to those who have been found guilty of irregularities. He says in the past, recommendations have not been followed.
“Experience over the last 15-20 years has been that they have been a significant growth in the number of municipalities and leadership of these institutions that ignore the recommendations of the audit,” said Makwetu.
Makwethu says the amendment public audit act means, it now has the power to issue a binding recommendation.
“This means that it has graduated from being our understanding based on your desire to introduce strong controls.”
