AG withholds opinion on Mangaung

2012-02-01 12:10
Bloemfontein - The Auditor General (AG) has withheld an opinion on the 2010/11 financial statements of the Free State’s newly-established Mangaung metro municipality.

"I have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion," the AG said in a report that was before the Mangaung metro council on Monday.

Mangaung spokesperson Qondile Khedama said the city had put in place all the necessary systems to stop the spread of "non-adherence" with its financial system.

"We are busy strengthening our finance department with particular emphasis to supply chain" he said on Tuesday.

Irregular expenditure

The AG report indicated irregular expenditure of R148 765 509 and R108 427 595 which occurred in the current and previous financial years mainly because of contracts awarded to suppliers without authorisation.

Money spent, but not budgeted for, came to R67 711 892 for the 2010/11 financial year.

Answers were also still outstanding on investigations into previous unauthorised expenditures of R466 793 278 by June 30 last year.

Khedama said the city management would study the audit report and advise the council on corrective measures.

Democratic Alliance councillor Werner Horn said the AG’s refusal of an opinion was a indication of the ANC’s bad management style, money wasting practices and even possible corruption.

Drastic steps

Horn said executive mayor Thabo Manyoni and newly-appointed municipal manager Lindiwe Mazibuko would have to implement drastic steps to stop the squandering of public money.

The DA said the municipality’s computer and IT-system were inadequate for the job and there were no proper collection processes.

City management said the process of cleaning the customer database and its indigent registers had started.

Khedama said other parallel processes had also started with the aim of improving the integrity of the city’s billing system.

Horn said his party would make urgent recommendations to Manyoni to immediately stop all non-budgeted payments.

Read more on:    bloemfontein  |  government spending

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.