Think Piece: Makwetu speaks into a void, as graft won’t be tackled

Auditor-general Kimi Makwetu released the 2018-2019 Municipal Finance Management Act consolidated general report on local government audit outcomes last week, which indicated extreme abuse of the public purse.

With an apparent lack of oversight of municipalities, and no accountability or consequence management, there were 28 outstanding audits. If the government cannot get municipalities to submit their financial statements on time, how can it stem the tide of corruption?

The financial statements reflect a culture of nonaccountability:

• R1.26 billion was spent on consultants to assist in the preparation of financial statements;
• 41% of municipalities had no policy or no approved policy on water maintenance;
• 41% of municipalities had no policy or no approved policy on sanitation;
• Many municipalities are crippled by debt and are unable to pay for water and electricity;
• Unauthorised, irregular, fruitless and wasteful expenditure proliferates throughout all municipalities;
• Limpopo lost R1.2 billion through the VBS debacle (court actions are under way and the Hawks are onto it);
• A municipal manager (Vhembe District in Limpopo) was found guilty of financial mismanagement and was paid a R1 million settlement when he resigned;
• Expenditure on information technology: millions spent on systems implemented but not used, millions spent on systems with defects, millions spent on software licences not utilised; and
• Salary figures for municipal managers and senior management were not in the report.

All in all, these are dysfunctional control environments. There are greedy hands in the till, prolonged vacancies in key positions, no consequences for poor performance and transgressions and complete disregard for legislation, internal controls and financial management. Infrastructure and institutions are crumbling.

Makwetu is of the view that firm steps should be taken to “restore the integrity of these institutions and place them in a position to manage their finances towards the achievement of citizens’ needs”.

Dr Nkosazana Dlamini-Zuma, minister of cooperative governance and traditional affairs (Cogta), tweeted that she “welcomed” the report. Perhaps the minister “welcomes” all auditor-general reports.

After all, Makwetu issued a disclaimer of opinion on the Cogta annual report for last year as he was unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

The Cogta audit report details a shocking lack of internal controls, noncompliance with legislation and hundreds of millions of rands lost – including through payments made to wrong suppliers, ghosts and nonqualifying government employees.

The fish rots from the head. Until the government stands up against corruption, Makwetu will be speaking into the void. Nothing will get done.

The municipalities will continue to plunder and loot until they are unable to provide basic services. And then the consequences will be catastrophic.

Barbara Curson.

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