NOTES AND FOOTNOTES: Why Zuma fired Gordhan and became Public Enemy No 1
These notes and footnotes are related to the story Why Zuma fired Gordhan and became Public Enemy No 1 NOTES 1. The misspending figures include irregular, fruitless and wasteful, and unauthorised expenditure, as reported by the AG. The future value is based on a ‘government inflation rate’ of 15%pa. This government inflation rate from corruption, fraud, theft and incompetence is based on past comments by Kenneth Brown, the former chief procurement officer of National Treasury, who stated in an interview that of the R600 billion goods and services government purchased, R240 billion or 40% was where overpricing and fraud occurred, amounting to 20-30%. But this is just irregular spending, so one also has to make allowance for fruitless and wasteful expenditure, which on average for 2011 to 2016 equals 5.2% of irregular spend. Putting it all together one gets: ((R600b*40%*30%)+(R600b*40%*30%)*5.2%)/600=12.6%. But this excludes salaries for ghost workers and unqualified personnel, ...
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