The eThekwini municipality says it has radically reduced irregular expenditure for this financial year.
Speaking at an Executive Committee meeting outlining irregular expenditure for the 2016/17 and 2017/18 financial years eThekwini Mayor Zandile Gumede said she was “very happy” to see irregular expenditure decrease from R513 million in past financial years to R48 million to date.
Gumede said the report paints a picture of where the municipality is and where it is going. “We believe in transparency and whatever we do, the public must be informed about it.”
No wasteful expenditure
Mayor Gumede also pointed out that the total amount for irregular expenditure was not wasteful as goods and services had been received.
Deputy City Manager of Finance Krish Kumar explained the reasons for some of the departments’ irregular expenditure. He stressed that goods and services were received as per certification from the respective heads and DCM’s for all the expenditure incurred.
He said in some instances the irregular expenditure was a result of contracts expiring and not being re-advertised timeously.
However, to counter this, he said there is now a contract register in place to track contracts to assist them and thus preventing irregular expenditure.
The tabled report served to inform the Executive Committee of the non-compliance with Supply Chain Management (SCM) Policy which resulted in irregular expenditure by the Municipality as well as to highlight the process followed in dealing with irregular expenditure and to seek condonation of such expenditure.