KZN municipalities slated over spending

2012-01-31 21:31

Durban - KwaZulu-Natal's 47 municipalities have incurred R2bn in irregular spending, Co-operative Governance MEC Nomusa Dube said in Durban on Tuesday.

"The amount of irregular expenditure is sitting at R2bn. Surely this is a cold and concerning fact that our councillors must attend to," she said during the awarding of certificates to the five municipalities that received clean audits in the 2010/2011 financial year.

Although the province managed to do away with adverse and disclaimer audit reports, it was concerned about the emphasis on matters which arose as a result of irregular spending.

Of KwaZulu-Natal's 61 municipalities, 47 received unqualified reports, while five received clean audits.

Among the culprits which featured prominently for irregular expenditure was KwaZulu-Natal's only metropolitan council, the eThekwini municipality, with irregular spending at over R1bn.

Clean audit campaign

Tuesday's function was also attended by Auditor General Terence Nombembe.

Dube said she had seen major changes in how municipal finances were handled since her department began its clean audit campaign.

"Since the launch of operation clean audit, we have recorded year-on-year improvement in our municipal management area."

The main factors that compromised municipal finances were poor controls, poor quality of financial statements and non-compliance with supply chain management.

Dube said the achievements of the Richmond, Umdoni, Umtshezi, Emandlangeni, and Umzinyathi municipalities showed that KwaZulu-Natal would soon achieve its clean audit target.

Congratulating the municipalities, Nombembe said he would continue supporting municipalities so all of them could get clean audits.

Targets exceeded

"We are very excited by the results. What is pleasing is that for this year we have exceeded our targets.

"Four municipalities said they would attain clean audits this year. I am happy that you have exceeded your targets by getting five clean audits."

Inkatha Freedom Party shadow finance MEC, Roman Liptak, said he was worried too many municipalities remained in financial distress.

"The 2014 deadline for all KZN municipalities to achieve clean audits within the framework of the operation clean audit is unrealistic given the persistent municipal challenges and recurring audit issues."

The lack of proper management repeatedly resulted in poor audit outcomes in municipalities, he said.

"Too many KZN municipalities have acting municipal managers and chief financial officers and it is these critical vacancies that have to be filled before we can expect improved audits."

  • Anthony - 2012-01-31 21:51

    you are very excited by the results that R2bn is where? wow great going, not far behind limpopo, must say outstanding work done.

  • TheWatcher - 2012-01-31 21:53

    Anyone surprised?

  • Koekies - 2012-01-31 22:17

    We thank you for paying your taxes :-)

  • Patrick - 2012-02-01 06:15

    O south africa, tick tock tick tock...........?!

  • braamc - 2012-02-01 06:56

    KZN municipalities slated over spending - What a joke, stop stealing for god sake

  • Sara Sakoor - 2012-02-01 07:36

    Proud to know that my husband is part of Umdonis financial team!

  • duncan.cramer - 2012-02-01 08:20

    Wow. They set themselves a 6% target, and achieved 8%. Clearly what determines government pass/success rates is at least consistent from Dept of Edu to Dept Performance Management Monitoring and Evaluation . "Yes...congratulations Mr President! You have achieved 8% on your performance review. At least know you now you can relax and maybe take it a bit easier next year."

  • David - 2012-02-01 08:23

    Thank you for the article Bongani. You may be interested in this blog post and associated article written by Lungelo Nomvalo, Director at Deloitte Consulting. The intention behind this article is to initiate debate with government leaders around the issue of service delivery within the metropolitan councils and ways in which to improve service levels. The link is

  • Gary - 2012-02-01 09:03

    slated over spending yet they exceeded targets.......LMFAO!!!!!!!!

  • ludlowdj - 2012-02-01 10:37

    Where ever the ANC goes, trouble is sure to follow. The contract with Top Gear almost certainly means that Durban will not receive a clean audit in the next 3 years at least unless of course the ratepayer pull up his socks and pays every cent he earns to the municipality in exchange for the bad service and decay of the CBD that has left our once proud city looking like a Bronx slum, actually I lie, The slums in the Bronx are a lot cleaner.

  • Phil Hair - 2014-08-24 21:12

    "too many municipalities have acting municipal managers and chief financial officers" HOW RIGHT YOU ARE Acting the fool for sure!!!!!!

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