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Public protector, advocate Thuli Madonsela, says over-billing and false billing by service providers will cripple the state.
She was addressing the Institute of Municipal Finance Officers in Somerset West on Wednesday.
Madonsela said her office was picking up a startling number of cases where service providers were being overpaid.
She said the billing problem was compounded by the fact that municipal officials were colluding with service providers.
Madonsela pleaded with audit committees, and finance and risk officers, to exercise due diligence to prevent this type of fraud and maladministration.
