It is astonishing to read in the Auditor-General’s (AG’s) 2019 consolidated general report that public entities spent R1.747 trillion in the last fiscal year, reports Moneyweb.

But perhaps it shouldn’t be that surprising, given the 2019 national budget estimated spending of R1.665 trillion for 2018/19, which amounts to 33% of GDP.

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Auditor-General Kimi Makwetu, was sparing in his praise of public entities and their financial conduct

If we take the AG’s figures, the public sector is gobbling up 34.5% of GDP – and this figure is growing each year. That should concern us.

IT SHOULD ALSO CONCERN US THAT MORE THAN A THIRD OF THE NATIONAL BUDGET IS GOING ON SALARIES.

The 20 state-owned entities (SOEs) audited by the AG spent R347 billion in the last financial year.

Irregularities defined

At a media training session this week, representatives from the office of the AG explained the audit process followed, as well as the AG’s new powers to curb the alarming trends in irregular spending and material irregularities. Read more on Accounting Weekly.