Cape Town - The Cape Town City Council, often touted as the best-run city by the DA, was red-flagged by Auditor-General Kimi Makwetu for irregular spending of R65 million and for underspending on two projects to the tune of R183.5m.
According to the auditor-general’s report, all metros incurred irregular expenditure over the past three years.
“In the City of Cape Town, 51% was as a result of non-compliance with legislation on contracts and the remainder was due to non-compliance with other procurement process requirements,” the report said.
It said the non-compliance of supply chain management was in connection with traffic contravention services. The contracts relating to traffic contravention services were extended three times without following the prescribed process, resulting in irregular expenditure of R65m. The total value of the extensions represented 87% of the original contract value.
The AG also flagged two water projects for underspending of the annual budget by R183.5m.