Municipal finances improving

2010-02-01 19:03

Pretoria - The financial management of municipalities in Gauteng is steadily improving, MEC for local government Kgaogelo Lekgoro said on Monday.

Lekgoro said 11 out of 14 municipalities in Gauteng had received unqualified audit opinions, marking an improvement from the previous financial year when there were only eight.

An unqualified audit is a good audit and means the municipality has accounted for everything and has all the supporting documents for monies spent.

Restores confidence

"When the finances of municipalities are spent and managed properly it restores confidence in the leadership of government and it strengthens the provision of services to communities," said Lekgoro in a statement.

The Johannesburg metro has for the third time received an unqualified audit opinion. This also includes Ekurhuleni, West Rand, Sedibeng, Metsweding, Lesedi and the Midvaal.

Lekgoro said the improvement was due to measures implemented by the provincial government in 2007, as part of the broader programme of implementing the Municipal Finance Management Act.

However, he was disappointed they could not improve the audit outcomes of Tshwane, Kungwini and Nokeng Tsa Taemane municipalities.

"We are hopeful that through the continuation of our partnership with the SAICA [SA Institute of Chartered Accountants] it may be possible to reach the target of a clean audit at all municipalities in Gauteng by 2010," he said.

"We are working to ensure that they sustain this good performance on the audit outcomes."

- SAPA