10 things you need to know about SA’s municipalities

2014-07-30 13:33

Auditor-General Kimi Makwetu has released his latest municipal audit reports – and it’s not a pretty picture.

Makwetu was accompanied by Cooperative Governance and Traditional Affairs Minister Pravin Gordhan, deputy minister Andries Nel and SA Local Government Association (Salga) chairperson Thabo Manyoni in Pretoria today as he released the 2012/2013 audit reports.

Here are ten things you need to know:

1. Just 30 of the country’s municipalities and entities got a clean audit – out of 319 nationwide.

2. 22 of those with a clean bill of health were municipalities and eight were municipal entities.

3. Municipalities in Limpopo, Free State, the Eastern Cape and North West did not receive a single clean audit.

4. KwaZulu-Natal received the highest number of clean audits – seven municipalities and four entities.

5. Irregular expenditure increased to R11.6 billion – which means tender procedures were not followed – but goods and services were received for R8 billion worth of this expenditure.


6. The 278 municipalities had a combined budget of R268 billion: R62 billion was spent on salaries, R166 billion on goods and services and R40 billion on capital expenditure in the financial year under review.

7. Despite municipalities and entities spending R695 million on consultants to help with their financial records and reporting, there was no improvement, Makwetu said.

8. 85 municipalities and their entities received qualified audit outcomes. This means they were unable to accurately account for the money they spent.

9. Among the 30 municipalities and entities that received clean audits, 13 have maintained this status since 2011.

10. 59 municipalities and entities received disclaimed audit findings – they couldn’t provide any proof about how their money was spent.

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