THE winner of the hotly contested Nelson Mandela Bay metro in the upcoming local government elections will inherit a financial headache.
Despite the ANC appointing soccer supremo Danny Jordaan as metro mayor in an attempt to save the municipality from opposition hands‚ it might take more than a famous homeboy to turn things around.
The metro alone accounted for 42% of R1.34-billion in fruitless and wasteful expenditure found across all municipalities‚ auditor-general Kimi Makwetu said when he released his 2014-15 report on municipalities in Pretoria yesterday.
Nelson Mandela Bay’s fruitless and wasteful expenditure amounted to R423-million in 2014-15‚ up from R11-million the previous year.
It was also the second-highest contributor to the report’s total figure of R14.75-billion for what is termed irregular expenditure, after Rustenburg in the North West (R3-billion).
Nelson Mandela Bay metro’s irregular expenditure totalled R1.3-billion.
Makwetu named and shamed the Bay metro to illustrate that few municipalities had contributed significantly to the otherwise positive report’s bleak findings on fruitless and wasteful expenditure.
“How come you have these good outcomes when you have this massive level of fruitless and wasteful expenditure?” he said. “I’m suggesting the number [for fruitless and wasteful expenditure] is big in that it’s a billion.
“But the rest of the guys have got R9 000 there‚ R12 000 there‚ R20 000 there of fruitless and wasteful expenditure‚ which is an acceptable figure in the context.”
To explain how the metro reached the extremely high amounts‚ Makwetu referred to buses bought ahead of the 2010 Soccer World Cup and which have been standing idle.