Business Leadership South Africa (BLSA) is deeply concerned about the lack of accountability in the administering of public funds. The Auditor-General Kimi Makwetu released his annual Public Finance Management Act (PFMA) audit report which reveals that fruitless and wasteful expenditure increased by 200% from the previous year. He also says irregular expenditure remains high at R51 billion.
The AG also revealed that 16 departments will require urgent intervention or may not be able to deliver services without financial assistance. This is concerning because the same officials who plunged these departments into financial distress will now be trusted with more funds.
Business believes that funds wasted could have been used for the betterment of public services and the creation of much-needed jobs.
BLSA welcomes the signing into law of the Public Audit Amendment Bill by the country’s President Cyril Ramaphosa, which allows the AG powers to demand accountability and take action against those found to have flouted the PFMA. Business believes that it is about time the public purse is protected from officials who do not have the best interests for the country.
We believe that the bolstering of the office of the Auditor General will ensure that those who are responsible for financial abuse and wastage that has crippled our economy will be held to account for their actions.
For full AG report click here