Mashaba calls out previous administration after AG audit outcomes
JOBURG – Mashaba said that since taking office, the new administration has worked hard to begin the process of improving the City's performance on financial management and reporting.
Mayor Herman Mashaba said an audit of the City of Johannesburg has revealed years of rampant maladministration.
This after the Auditor General (AG) released the consolidated outcomes for the previous financial year, ending 30 June 2016, of the 268 municipalities nationwide.
“Under the previous [African National Congress] administration’s leadership, the AG found that the City’s financial performance had remained stagnant, scoring an unqualified opinion with findings due to a number of control deficiencies relating to record management and processing, reporting and reconciliation of transactions,” Mashaba said.
“Added to this, so-called corrective measures taken by the previous administration failed to address root causes of previous deficiencies highlighted by the AG, resulting in repeat findings on, among others, material misstatements in the financial statements, non-compliance with legislation, including supply chain management prescripts, and inadequate performance reporting.”
Mashaba added that, sadly, two of the City’s utilities, Pikitup and the Johannesburg Roads Agency, received an unqualified opinion with findings in the 2015/16 year of review.
The mayor said since taking office, the new administration had worked hard to begin the process of improving the City’s performance on financial management and reporting.
This included capacitating the Compliance Unit which scrutinised all supply chain management contracts and ensured compliance, introducing an open tender system and capacitating the City’s Group Forensic Investigations Unit.
He added that the previously reported AG audit findings resolution rate had increased to 59 per cent and internal audit findings resolutions to 58 per cent, in May.
The next financial year’s budget, starting 1 July, was not approved by the ANC in council on 25 May. The ANC’s caucus leader and former Joburg mayor, Parks Tau disagreed with MMC for Finance, Dr Rabelani Dagada’s, statement that 60 per cent of the City’s capital expenditure in its budget focused on projects in poor communities. Tau claimed the figures did not show the 60 per cent commitment.
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