Ratepayers demand accountability for Ri.lbn irregular expenditure write-off

PROCEDURAL OVERSIGHT’

- ZAINUL DAWOOD

RATEPAYER bodies in the eThekwini Municipality said they were inundated with concerns about the municipality's R1.1 billion write-off concerning irregular expenditure.

The municipality clarified that the decision was made in strict accordance with the Municipal Finance Management Act (MFMA) and relevant guidelines.

The municipality emphasised that this expenditure did not result from fraud, corruption or financial loss to the municipality.

Instead, it stemmed from procedural oversights, such as bid documents not specifying local production and content requirements for designated sectors.

The expenditure is being written off on the basis that goods or services were received or value for money received.

The municipality explained that the irregular expenditure in question primarily arose from technical noncompliance with local content provisions in certain contracts awarded through legitimate public tender processes.

“Tt should be noted that for irregular expenditure, the municipality follows its consequence management processes in holding those responsible for incurring irregular expenditure accountable.

“In the 2024/25 financial year, the municipality investigated 19 cases of irregular expenditure,” the municipality stated.