No clean audits for Gauteng municipalities
JOBURG - No municipalities in Gauteng received clean audits according to Auditor-General Terrence Nombembe.
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Only three of the country’s municipalities and three municipal entities received clean audits.
“Overall, the municipal audit outcomes have regressed, with only 48 percent of the auditees being able to obtain financially unqualified audit opinions, most of whom did so by correcting the mistakes identified through the audit process,” he said.
Nombembe said the municipalities that received clean audits were commendable as they proved beyond doubt that clean administration was achievable where there was leadership commitment.
The winning formula of these auditees, he said, was that their leadership led by example and made concerted efforts to resolve audit matters raised in their previous year’s audit reports.
Local government consisted of eight metropolitan municipalities, 44 district municipalities and 226 local municipalities, and 60 municipal entities.
Nombembe said the progress towards clean audits had been slow, with the number of clean audits remaining at the same low level of five percent for the past three years, and the overall audit outcomes regressed, as 41 auditees improved, but 50 auditees regressed.
He said almost half of the auditees that obtained a clean audit opinion were municipal entities, rather than municipalities.
“Unfortunately, the metropolitan municipalities faltered in their crucial role of providing exemplary leadership to smaller municipalities, as none of the eight metros
obtained a clean audit opinion,” said Nombembe.
He called for decisive action against political leaders and municipal officials that deliberately or negligently ignored their duties and disobeyed legislation.
“Such transgressors should be decisively dealt with through performance management and by enforcing the legislated consequences for transgressions.”
Nombembe said his office would continue to work closely with all those charged with governance and oversight as part of the drive towards the realisation of clean administration in municipalities in the country.