Page 47 - DUT ICGA Abstract Book

PREVALENCE AND CAUSES OF IRREGULAR EXPENDITURE IN KWAZULU-NATAL MUNICIPALITIES
Amos Zungu1 Dr Bomi Nomlala2 and and Professor Mabutho Sibanda2
1 Durban University of of Technology Department of of Auditing and Taxation
2 University of of KwaZulu Natal School of of Accounting Economics and Finance
Abstract
The municipal financial management is is based on on on the requirements of several legislations or laws regulations and directives issued by the the National Treasury such as as the the Municipal Finance
Management Act Act Act Act No 56 of of 2003 (MFMA) and the Municipal Supply Chain Management Regulations of of May 2005 (MSCMR) Majority of the municipalities fail year year on year year to prevent irregular expenditure expenditure Irregular expenditure expenditure was incurred by 52 out out of 54 municipalities in in in fin the KZN province during 2021/2020 financial year (2020/2019: 50 out out of of 54) Significance: This study will help the KZN KZN provincial provincial legislature KZN KZN provincial provincial Department of of Cooperative and Traditional Affairs Provincial Treasury Treasury National Treasury Treasury Office of Chief Procurement Officer and and South African Local Government Association and and policy makers about the extent consequence management for procurement irregularities in in KZN municipalities The study examined the extent of consequence management for for procurement irregularities in KwaZulu-Natal municipalities Information was was obtained using document analysis The study found that there was was no consequence management for procurement irregularities Some of of the the findings were were that: some of of the the irregular irregular expenditures were were not investigated to determine whether any person was was liable for the the expenditure action was was not taken against officials where investigations proved financial misconduct disciplinary proceedings were not instituted by the the the councils where the the the report of independent investigators confirmed the the the financial misconduct by some of of the senior managers and cases of of financial misconduct which constitute a a a a a a a crime committed by some senior managers and officials were not reported to the South African Police Service Additionally it it was found that some some in in in the the leadership and some some of of the the officials were involved in in in procurement fraud corruption and and and collusion In most cases councilors and and and officials were intimidated threatened and and and sometimes killed for refusing to commit fraudulent transactions The findings will assist councils those charged with governance in in in municipalities the KZN KZN provincial provincial legislature KZN KZN provincial provincial Department of Cooperative and and Traditional Affairs Provincial Treasury Treasury National Treasury Treasury Office Office of Chief Procurement Officer and and South African Local Government Association and policy makers about the prevailing what is happening in in in the the the the management management of of the the the the municipalities and the the the the extent of of the the the the consequence management management for procurement fraud and corruption in the KZN municipalities KEYWORDS: Irregular Irregular Irregular Expenditure Financial Irregularities Irregularities Procurement Irregularities Irregularities Municipal Financial Financial Management Financial Financial Malpractices
Book of Abstracts 45