The City of Cape Town's "Unqualified" Audit Report Exposed by ANC

2013-08-14 20:58

This week’s events have only been bad for the City of Cape Town. People who follow current affairs have been forced to question themselves about the image of the city painted by the DA.

The City of Cape Town came under fire for its financial management which can now by the ANC Western Cape and Auditor General Terence Nombembe be called financial mismanagement.

When the Auditor’s Report came in, the CofCT was highlighted as one of the cities that did not get a clean audit.

This goes against everything the DA and its supported hail themselves with. Very often, the DA speaks as if they are immune to challenges faced by most South African municipalities.

That where ever they govern, especially in Cape Town only good things happen. One wonders then how the City of Cape Town managed to get an audit report thats not clean from Mr Nombembe and maybe the ANC in Western Cape has answers.

Earlier this month, CoCT mayor said the city had spent R5.7 Billion of its capital expenditure. The ANC Western Cape Chief Whip Xolane Sotashe said that is far from the truth as the City could not account for over 1 billion in the 2012/13 budget.

Sotashe said it became apparent that the city could not meet its expenditure targets by the year end of the financial year.

The city approved a budget of R6.2bn for the financial year of 2012/2013. The city’s actual spending until the end of May was only R3.6bn.

The city also committed R1.1bn in unrealised projects in its budget as up to the end of May that together equalled R4.7bn.

This meant there was a shortfall of R1.5bn between the original amount budgeted of R6.2bn and the R4.7bn allegedly spent.

Sotashe further asked how was it possible that the city jumped from the actual spending in May to 5.7 billion in June. Ian Nielson and the DA claimed to have spent R55 million on Adderely street feeder stations in the 2012/2013 financial year.  But these stations are nowhere to be found in Adderely Street. The City also claimed to have paid Taxi Associations R 632 million for compensation and scrapping of their vehicles, yet no taxi associations have been paid. We all have to ask ourselves then where are these monies the city said it paid for the non existing feeder station and where did the money go if the Taxi Associations never received it? 

When the ANC-Western Cape raised its concerns, DA spin doctors and de Lille watered down these serious allegations in the Media and accused the ANC of being confused by big numbers. Looks like the Auditor General will also get his fare share of accusal, Mr Nombembe got confused with numbers and gave the City a qualified audit.

To me it looks like DA’s tricks of manipulating the City budget have finally caught up with them and such forces us its residents to start opening our eyes and actually question the picture the DA paints of places that it governs.

A report of these allegation by the ANC Western Cape will be handed to the Public Protector and criminal charges of fraud will be opened Mr Sotashe said.

The reason I put only the City of Cape Town in the sport light is because of the perception people have about places where DA governs. Some among us are in belief that the DA will never misuse the tax-payer’s money. it has became a norm by everyone to separate the City of the Cape Town from other metro's as a single best run city in South Africa.

If the City of Cape Town’s inability to get a clean audit report does not convince that all our municipalities face similar challenges I don’t know what will.

Twitter @esethu_u


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