Johannesburg audit alleges 74 irregularities
Johannesburg - An auditor general (AG) report shows that 74 cases of alleged irregularities were investigated in the 2010/11 financial year in the city of Johannesburg.
Municipal public accounts chairperson Sicelo Gcabashe said in a statement: "It's also noted the non-compliance [with] legislative requirements such as the supply chain management regulations and the Municipal Finance Management Act by certain employees and departments as a worrying phenomenon."
He said the AG's report highlighted a number of weaknesses in the city's financial management system. Supply chain management needed special attention, Gcabashe said.
The city was doing business with its own staff, not paying its service providers on time and incurring much irregular expenditure.
Gcabashe said to solve these problems credit control policies needed to be put in place to minimise outstanding debts or increase revenue collection.
Referring to the billing system, he said: “Customers must receive accurate bills to eliminate queries."
The record keeping system had to be attended to so that necessary information was readily available and audit evidence archived.
"The municipal public accounts committee will closely monitor the controls and ensure accountability since allegations or even acts of fraud and corruption undermine effective service delivery," Gcabashe said.