1. Lack of Transparency and Accountability: One of the primary contributors to irregular expenditure is the lack of transparency and accountability within the public sector. Weak oversight mechanisms, limited reporting, and a lack of consequences for those responsible for financial mismanagement create an environment conducive to irregular spending.
2. Inadequate Financial Management Systems: Outdated and inadequate financial management systems can also be pinpointed as a root cause. Efficient financial controls, reporting, and auditing processes are essential for preventing irregular expenditure. Outmoded systems may lead to errors, discrepancies, and difficulties in tracking expenditures, making it easier for irregularities to occur.
3. Procurement Irregularities: Procurement processes are another major source of irregular expenditure. Weaknesses in the procurement framework, such as lack of competition, insufficient due diligence, and corruption, can result in overpriced contracts and the misuse of public funds. Bypassing proper procurement protocols can lead to inflated costs and irregularities in spending.
4. Political Interference and Patronage: Political interference and patronage are significant contributors to irregular expenditure. When decisions about resource allocation are influenced by political agendas or personal connections, it can compromise the integrity of financial processes and lead to wasteful spending.
5. Inadequate Capacity and Training: A lack of capacity and proper training within the public sector can also contribute to irregular expenditure. Insufficiently trained personnel may struggle to understand financial regulations, which could lead to unintentional errors and non-compliance. Adequate training is essential to ensure that all staff members are well-versed in financial procedures and regulations.
6. Complex Regulatory Environment: South Africa’s regulatory environment can be complex and challenging to navigate. Regulations that are unclear, convoluted, or subject to frequent changes can create confusion and make it easier for irregular practices to occur, either due to misunderstandings or intentional manipulation.
7. Weak Internal Controls: Internal controls are critical for preventing irregular expenditure. Inadequate internal controls, such as poor segregation of duties and weak oversight, create opportunities for unauthorized expenditures to go undetected.
8. Lack of Consequences: A lack of consequences for individuals involved in irregular expenditure fosters an environment where such behavior can persist. When those responsible for financial mismanagement face little or no repercussions, it can perpetuate a culture of impunity.

Conclusion