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By Mwangi Ghathu 
7h ago
Cape Town – Failure to adhere to strict auditor general (AG) requirements on municipal supply chain management (SCM) was the reason the city posted unusually high irregular expenditures in the most recent financial year, according to the Local government MEC Anton Bredell.
The city of Cape Town received a red flag from Auditor General Kimi Makwetu for irregular spending amounting to 65 million rand.
Bredell said the City recorded a higher amount in irregular spending during the most recent financial year because for five years it had not adequately met the requirements of the auditor general’s SCM regulations.
In response to a question in the MPL Derrick America legislature about the City’s unusual spending, Bredell said the City acquired legal services over several years through a process that had now been found not to be in compliance with all SCM Regulations. .
“Therefore, the City was requested to disclose such acquired legal services as irregular expenses retroactively for five financial years,” Bredell said.
“In addition, due to the interpretation of City law regarding the disclosure of irregular expenses related to amounts paid versus payable, the practice in the City was to disclose amounts paid as irregular expenses and the amount payable as a deviation. Bredell said.
“It was found that both amounts should have been disclosed as irregular expenses and the City had to reclassify the amounts payable from deviations to irregular expenses. This resulted in a decrease in deviation and an increase in the amounts of irregular expenses that are disclosed. “
In response to a question about what measures were in place to prevent such an occurrence in the future, Bredell said: “The corrective measures that the City had implemented have revealed additional non-compliance issues that the City had to disclose, and these issues are currently being addressed. the municipal commission of public accounts has recommended and assumed the management of consequences the City Council continues to find proactive mechanisms to detect and self-report irregular expenses the City Council did not record any irregular material expenses that should be recovered from politicians and staff when proven that have deliberately caused the irregular spending. “
Cape Argus
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