Gauteng wastes R37 million on bad debt

Gauteng Premier, David Makhura, has indicated that under his watch the provincial government has blown R37 million on paying off interest on accounts that it failed to pay within the legally stipulated 30 day period.

Addressing the DA in the Gauteng Legislature, Premier Makhura indicated that this wasteful expenditure was primarily incurred by the departments of Education and Human Settlements.

Despite the Premier announcing earlier this year that some departments had managed to make payments within 15 days, it is clear from this figure that there is still a massive challenge faced by this administration to pay those whose services it makes use of.

This wasteful expenditure is a 41% increase from the previous financial year and is evident that this ANC-led administration is failing to stem the rot.

While the Premier indicated that Accounting Officers were investigating the reasons for the drastic increase in wasteful expenditure, and that action would be taken when they had wrapped up their inquiries, it is unlikely that anyone involved will be held liable.

Each year wasteful expenditure is incurred by this government but there have been no consequences for those who flout the law and waste Gauteng resident’s money.

This sentiment has been reiterated by the Gauteng Public Service Commission (PSC) which has stated that this administration has no consequence management policy.

This administration is no stranger to financial mismanagement. In 2015 the PSC alarmingly noted that of 121 cases of financial misconduct, only 3% of individuals were criminally charged, and of the R67 million that went missing, either through corrupt business practices, theft or negligence, only R 6000 was recovered.

These public funds could be put to better use – improving infrastructure, fast tracking housing delivery and cleaning up an overburdened health system, but instead it is now irrecoverable and of no use.

The DA will insist that Premier Makhura make available copies of the reports by the Accounting Officers and insist that those who are responsible for the waste of public funds are held accountable.