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The IFP has condemned the increasing volumes of waste within the KZN
provincial government as evidenced by the latest figures for
unauthorised, irregular and fruitless and wasteful expenditure during
the financial year that ended on 31 March 2012.

“The figures for unauthorised, irregular, and fruitless and wasteful
expenditure across the provincial government are all up on the previous
audited financial year mainly due to the lack of internal controls and
flawed procurement procedures,” said Shadow KZN MEC for Finance Roman
Liptak MPL.

Unauthorised, irregular, and fruitless and wasteful expenditure within
KZN’s 16 government departments stands at R1.2-billion (up from
R265-million in the 2010/2011 financial year), R2.7-billion (up from
R1.4-billion), and R93-million (up from R12-million), respectively.

“In some government departments, most notably Education and Health,
these figures are so overwhelming that they warranted audit
qualifications for these departments. These two departments happen to
administer KZN’s two largest budgets and in both cases dodgy expenditure
is a recurring issue,” said Liptak.

The IFP notes with concern that as shocking as the increased figures for
unauthorised, irregular, and fruitless and wasteful expenditure are,
they do not even provide a full picture with regards to financial
mismanagement within the provincial government as audit findings are, by
their very nature, based on sampling.

“In addition to insufficient internal controls, the bulk of
unauthorised, irregular, and fruitless and wasteful expenditure in KZN
stems from uncompetitive or unfair procurement processes and, more
specifically, awards of tenders to government employees or their close
relatives,” said Liptak.