Irregular municipal expenditure up by 75%

June 4th, 2018, Published in Articles: EE Publishers, Articles: Energize, Articles: EngineerIT, Articles: PositionIT, Articles: Vector

Consulting Engineers South Africa (CESA) is concerned about the 75% increase in irregular municipal expenditure, from R16,2-billion in the previous year to R28,4-billion in the year under review, as reported in the recent Auditor General’s report.

While CESA acknowledges the significant effort made by municipalities in 2016/17 to identify and report on irregular expenditure incurred in previous years, the organisation believes there still remains a lot to be done.

We believe the main reason for the increase in irregular expenditure is the continued non-compliance with supply chain management regulations and lack of consequences for mismanagement,” said CESA CEO Chris Campbell.

He says CESA believes that National Treasury’s Standard for Infrastructure Procurement and Delivery Management (SIPDM) is the model for infrastructure delivery that should be implemented by all spheres of government to ensure compliance and adherence to best practice, but that someone needs to take ownership and be accountable for it.

It is cause for alarm that, since the adoption and implementation of this procurement system, there is still no infrastructure directorate at National Treasury to take ownership and accountability for the implementation and monitoring of compliance with this standard.

Campbell says there are no in-house infrastructure specialists in either the offices of the chief procurement officer or that of the auditor general. He says the lack of appropriate skills in both departments must be addressed urgently if the value-for-money consideration of an annual R300-billion spent on infrastructure is to materialise.

“This becomes all the more imperative with the significantly reduced budget available for infrastructure development.”

The SIPDM programme was designed to migrate the emphasis away from administration and focus on governance and leadership.  This will ensure that infrastructure is delivered with the correct knowledge and competence. This efficiency and effectiveness must be the current focus of government, in particular National Treasury.

Contact Dennis Ndaba, CESA, Tel 011 463-2022, dennis@cesa.co.za