Irregular municipal expenditure up by 75%

June 27th, 2018, Published in Articles: PositionIT, Featured: PositionIT

Consulting Engineers South Africa (CESA) has expressed concern about the 75% increase in irregular municipal expenditure, from R16,212-billion in the previous year to R28,376-billion in the year under review, as reported in the recent Auditor General’s report. CESA believes 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 thereof, said CESA CEO Chris Campbell.

The National Treasury has devised a procurement system for infrastructure delivery (Standard for Infrastructure Procurement and Delivery Management or SIPDM) to be implemented by all spheres of government to ensure compliance and adherence to best practice. However, the body representing consulting engineers would like an Infrastructure Directorate at National Treasury to take ownership and accountability for the implementing and monitoring of compliance with this standard.

According to CESA there are no in-house infrastructure specialists in either the offices of the Chief Procurement Officer or that of Auditor General, and that the lack of appropriate skills in both these departments needs to be addressed urgently to gain the most value from the annual R300-billion spent on infrastructure.

“This becomes all the more imperative with the significantly reduced budget available for infrastructure development,” said Campbell. The body expressed its commitment to partner with government and the AG’s office to ensure value for money and service delivery imperatives are attained and that unauthorised expenditure is addressed.

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

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