Mixed views on city’s first clean audit in 16 years

According to the municipality, the Auditor General found the financial statements were free of material misstatements, there was no material non-compliance with key legislation and the municipality’s report was presented in an useful and reliable manner as measured against pre-determined objectives in the annual performance plan.

Read article here: Durban achieves first clean audit in 16 years

A press release from the municipality read: ‘The consolidated financial performance indicators show that the municipality is in a healthy fiscal position, which reflects the city’s strong commitment to the principles of accountability, transparency, anti-corruption, proper financial management and effective internal control systems.’

“This is something to really be proud of. Congratulations to the team on achieving a clean audit. I am excited about this as we achieved this while still focusing on service delivery,” said deputy mayor Nomvuzo Shabalala.

This is something to really be proud of. Congratulations to the team on achieving a clean audit.

Ward 66 councillor, Duncan Du Bois said it is difficult to accept this clean audit as the findings were not so great earlier this year.

“This is surprising news as on 29 January, in the council, the Auditor General expressed concern at Durban’s mounting debt, noting that it had increased from R1,99-billion in 2013 to R2,01-billion in 2014. He stated ‘the recoverability of these amounts is doubtful.’

He also was critical of under-spending on the capital budget by R505,36-million. He expressed concern that regulations requiring competitive bids for goods and services in excess of R200,000 were being flouted and noted ‘inadequate monitoring and oversight controls’ had resulted in deviations from the tender process.

Given those critical findings made just 10 months ago , it is difficult to accept that somehow, with the debt still in place and more incidents of corruption having been uncovered, suddenly Durban qualifies for a clean audit,” said ward 66 councillor, Duncan Du Bois.

The Bluff Alliance, too was cynical of the findings, citing numerous reports they made of incidents of misconduct or lack of work.

Finance and procurement committee chairman, Fawzia Peer said the clean audit shows funds were spent economically while maintaining high standards of service delivery.

The audit should always be clean, it should be a normal thing

“It is the first time since eThekwini was established in 2000 that a clean audit has been achieved. A clean audit means we have complied with the legislature of the country after submitting our financial records which were untainted. It indicates that we have done well with our performance management systems and that we have delivered as a city.

Previously we received unqualified audit outcomes, so to receive a clean audit is great. It was achieved due to a number of factors including the commitment of senior management including the mayor, executive committee, council and managers. We have also strengthened our internal audit processes as well as our supply-chain management processes,” added city manager, Sibusiso Sithole.

Sithole congratulated the municipal team on the success and said it needed to be maintained by filling critical vacant posts, strengthening the city integrity and investigations unit, improving communication with stakeholders and communities, minimising public protests and curbing irregular spending.

Bluff Community Orientated Policing manager, Rake Jeeves said a clean audit should be a given.

“How on Earth can they congratulate each other for doing the job that they should be doing anyway? The audit should always be clean, it should be a normal thing,” he said.