South African law separates three kinds of problem spending. Unauthorised expenditure is money spent outside the approved budget. Irregular expenditure is money spent in breach of procurement or other legislation, which does not necessarily mean it was wasted. Fruitless and wasteful expenditure is money spent in vain and which could have been avoided.

R73.9 billioncombined unauthorised, irregular, and fruitless and wasteful expenditure reported across all 257 municipalities in their most recent audited year

Against combined municipal expenditure of R611.4 billion, that is 12.1% of all money spent.

Where it is worst, as a share of spending

The rand totals favour large municipalities, so this ranks by irregular spending as a proportion of each municipality’s own expenditure. Figures above 100% arise because the amounts disclosed can include irregular expenditure carried over and identified from earlier years.

Municipality Province Share of spending Amount Grade
Ratlou North West 206.4% R40.2 million F
Ngaka Modiri Molema North West 162.8% R1.3 billion D
Dr Ruth Segomotsi Mompati North West 130.7% R1.2 billion E
Kagisano-Molopo North West 119.0% R95.3 million D
Nyandeni Eastern Cape 98.7% R330.6 million C
Kamiesberg Northern Cape 96.1% R102.0 million F
Umzumbe KwaZulu-Natal 93.3% R240.3 million F
Inxuba Yethemba Eastern Cape 92.2% R388.8 million F
Mafube Free State 86.4% R442.9 million F
Mthonjaneni KwaZulu-Natal 77.0% R192.3 million F
Umdoni KwaZulu-Natal 76.9% R330.4 million D
Magareng Northern Cape 72.0% R152.9 million F
Lekwa Mpumalanga 70.7% R1.2 billion E
Renosterberg Northern Cape 69.3% R74.4 million E
Impendle KwaZulu-Natal 66.7% R62.0 million F

The largest amounts in rands

Municipality Province Amount Share of spending
City of Tshwane Gauteng R5.2 billion 11.0%
City of Johannesburg Gauteng R4.8 billion 6.0%
eThekwini KwaZulu-Natal R4.5 billion 7.4%
Nelson Mandela Bay Eastern Cape R3.7 billion 19.6%
Emfuleni Gauteng R3.5 billion 32.0%
Emalahleni (MP) Mpumalanga R2.2 billion 31.1%
Buffalo City Eastern Cape R1.8 billion 14.8%
Madibeng North West R1.5 billion 42.4%
Mangaung Free State R1.4 billion 11.9%
Merafong City Gauteng R1.4 billion 39.6%
City of Matlosana North West R1.4 billion 23.5%
Ngaka Modiri Molema North West R1.3 billion 162.8%

What it does not tell you

Irregular expenditure is a compliance measure, not a fraud finding. A tender awarded without the correct number of quotations is irregular even if the goods were delivered at a fair price. It does, however, indicate weak controls, and municipalities with persistently high irregular spending tend to score poorly across the other financial measures too.

Figures on this page come from National Treasury, Statistics South Africa and the Auditor-General, as set out in the sources and methodology. Read the methodology