North West’s damning audit paints a picture of an unstoppable slide

The state of North West province’s public finances is on a “downward spiral”, and its government has shown a lack of accountability and commitment to clean administration.

This is the summary given in the auditor general’s latest report on the national and provincial audit outcomes for 2016-2017, which details systemic noncompliance, wasteful expenditure, a collapse in governance and serious weaknesses in leadership in the province.

The North West provincial government’s audit outcomes have regressed over the past four years. Only 32% of the departments and public entities audited obtained financially clean audits in 2016-2017 compared with 46% in 2015-2016 and 62% in 2014-15 and 2013-2014. No public entity achieved a financially clean opinion in 2016-2017.

READ MORE: Mabe tied to R49m North West tender

The report states that the office of Premier Supra Mahumapelo, as a key monitoring and oversight department, was an area of “specific concern” because it had maintained a qualified audit outcome for the past two years with increasing irregular expenditure.

Instead of working to address the weak control environment at the departments that were audited, the provincial leadership’s response was to “contest the audit conclusions”.

Most (91%) audited departments and entities had findings against them relating to irregular expenditure and nonadherence to procurement and contract management prescripts. This resulted in irregular expenditure rising from R3‑billion in 2015 to R3.6‑billion in 2016.

“As a result of this year-on-year increase and due to irregular expenditure not being investigated, the total unresolved balance for the province was R16.5‑billion,” said the report.

READ MORE: Whistleblower fingers North West leaders in ‘farm scam’

Three departments were to blame for close to 60% of the irregular expenditure, with community safety and transport management accounting for R880‑million. Health’s portion amounted to R714‑million, and public works and roads had a share of R550‑million.

In 2016, the province received R7.1‑million of conditional grant funding for 16 projects. Although 95% of the allocation was spent during the year, the auditor general said it identified instances where “targets of key projects were not achieved or where work was not completed at the desired quality”.

An example of this is a local government and human settlements housing project that was delayed for more than 20 months, incurring fruitless and wasteful expenditure. Poor project management and monitoring resulted in 503 housing units being demolished and rebuilt because of quality defects, even though the contractor had been paid in full.

The report says interventions did not have much effect on curbing the lack of accountability and consequence management. Its downward slide was inevitable “until such time as the pillars of accountability and good governance are put in place”. 

An actual Black Friday deal

Subscribe for R2/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Tebogo Tshwane
Tebogo Tshwane

Tebogo Tshwane is an Adamela Trust financial journalism trainee at the Mail & Guardian. She was previously a general news intern at Eyewitness News and a current affairs show presenter at the Voice of Wits FM. Tshwane is passionate about socioeconomic issues and understanding how macroeconomic activities affect ordinary people. She holds a journalism honours degree from Wits University. 

Related stories


Already a subscriber? Sign in here


Latest stories

‘Explosive’ jobs crisis imperils South Africa

Experts’ strategies for fixing the unemployment crisis range from devaluing the rand to a universal income grant or accepting debt from loans

South Africa’s newest national park will be in an agricultural...

People living on communal land and commercial farmers can incorporate their land into the new park and benefit from financial incentives

Shell’s Wild Coast exploration draws mounting public ire

Shell SA chair surprised by the scale of opposition to its planned 3D seismic survey

PODCAST: How South Africa fits into the global economy

Michael Power chats to the M&G editor-in-chief and business journalists about South Africa and its place in the global economy.

press releases

Loading latest Press Releases…