Monday, September 29, 2014

#NEWS: Public Works Minister Thulas Nxesi is shocked by the loss of 3.5 billion in irregular expenditure

 The public works department has lost almost R35 billion to wrongful and wasteful construction or
leasing of state buildings in the last five years, The Star reported on Monday.

Billions of rand in misspent money by the public works department is shocking, Public Works Minister Thula Nxesi said on Monday.

The public works turnaround has uncovered R34,9 billion irregular expenditure, some of which goes back as far as 2001,"he told reporters in Pretoria.


The losses were uncovered during the department's review of around 1,3 million transactions of the Property Management Trading Entity (PMTE) dating back to 2009.


The losses were revealed in a confidential report that The Star reported it had seen.

The losses were... "a result of supply-chain management processes not adhered to ." It revealed however, that there was a steady decrease in the losses of public funds in the last five years.\

Around R22 billion was lost in the 2009/10 financial year, R4,9 billion was lost in 2010/11, while R3,8 billion was lost in the 2011/12 period.

 The figure was R3,1 billion in the 2012/13 and R600 million in the last year.


Around R1,1 billion was lost to the fraudulent activities.



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