Cape Town leads clean administration

2011-06-29 15:09

The City of Cape Town is the only metro in the country to have received a clean audit, prompting Auditor-General Terence Nombembe to call on all mayors to lead the movement towards clean administration.

Addressing members of the media in Pretoria today, the auditor-general announced that only seven out of 237 municipalities have received clean audit reports.

Tshwane and Ekurhuleni received qualified reports while Johannesburg did not submit documentation before deadline.

Nombembe also pointed out that unauthorised municipal expenditure currently stood at R4.9 billion and irregular expenditure at R4.1 billion.

Trends emerging from the audits, he said, “are not good”.

» 84% of municipalities and municipal entities did not fully comply with regulatory requirements;
» The performance information reported by 65% of municipalities was not “meaningful or useful”;
» The performance information reported by 48% was not supported by reliable information; and
» 24% did not submit performance information in time for the audit process.

Financial issues that need to be addressed by municipalities, the auditor-general warned, were: Non-compliance with supply chain management prescripts and dependence on consultants to deliver work regarding financial statements that fulltime municipal employees should be doing.

According to Nombembe, 57 municipalities had improved their 2008/09 audit outcomes, 15 had regressed and 165 remained unchanged.

KwaZulu-Natal, with 12 improvements, and Gauteng, with 11, he said, registered the “most notable overall improvements in audit outcomes”.

Of the 237 municipalities and 49 municipal entities audited, only seven municipalities received unqualified audit opinions.

These are: City of Cape Town; Ehlanzeni, Steve Tshwete and Victor Khanye (both Mpumalanga); Metsweding (Gauteng); Fetakgomo (Limpopo); and Frances Baard (Northern Cape).

Ten municipal entities that received clean audit reports: Amathole Economic Development Agency (Eastern Cape); Brakpan Bus Company, Erwat, Joburg Property Company, Johannesburg Civic Theatre, Johannesburg Social Housing Company, Lethabong Housing Institute and the Roodepoort Civic Theatre (Johannesburg); Cape Town International Convention Centre and Overstrand Local Economic Development Agency (Western Cape).

Pointing out that municipalities with improved results ranged from small rural municipalities to Cape Town metro, the auditor-general said this showed that the challenges facing local government were not insurmountable.

He said: “The outcomes testified that other municipalities could follow suit and drive processes toward clean administration.”

Municipal leadership, he added, needed to improve results by appointing dedicated human resources to manage performance information and incorporating service delivery in the performance management framework of municipalities.

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