Auditor-General highlights rampant R1bn irregular expenditure in Joburg

Maluleke says malpractice observed in Joburg is part of a broader trend across major municipalities

- BANELE GININDZA

THE Auditor-General Tsakani Maluleke has drawn attention to the alarming reality of irregular expenditure within the City of Johannesburg (CoJ), revealing that the municipality was leading the nation in this regard with contracts exceeding R1 billion awarded to contractors with connections to officials.

In a webinar hosted by the Centre for Development and Enterprise (CDE) Conversations, Maluleke pointed out that the malpractice observed in Johannesburg is not an isolated issue, but part of a broader trend seen across major municipalities in South Africa.

However, she said a concerning aspect of this issue related to existing National Treasury regulations that allow municipalities to pay startups in advance for transactions not exceeding R2 000. She highlighted that these regulations may unintentionally facilitate corrupt practices within the CoJ.

"The CoJ has high irregular expenditure year-on-year and it does not seem to be a situation that is getting under control. So it raises questions about whether the Council, the Speaker, the Mayor are decisive," Maluleke said.