A special report by the provincial auditor general has highlighted financial mismanagement in most of the Eastern Cape’s municipalities.
In the report, which was tabled in the provincial legislature on Thursday, it was found that:
160 out of 202 former municipalities or local councils (79%) were not able to prepare financial statements in respect of the 2000-01 financial year within the deadline given by the Local Government Transition Act;
57% or 92 of the 160 cases were still in default by May 31 this year — 20 months after the due date;
21 local authorities have not provided financial statements for two or more years;
Only one municipality, the Amatole district municipality, submitted 2001-02 financial statements by the September 30 2002 due date; and
By May 31 2003, 32 of the now 45 municipalities (71%) had not provided acceptable statements.
South African Local Government Association chairperson Sakhumzi Somyo, who is also mayor of the Amatole district municipality, was not available for comment.
Democratic Alliance spokesperson on housing and local government Bobby Stevenson said the report showed the level of financial accountability in local government was clearly below standard in the Eastern Cape.
”It is clear that the millions of rands being poured into capacity building are not bearing fruit,” said Stevenson.
”It is time well-paid people begin to deliver what they are paid to do.”
Stevenson called on the department of housing and local government to take urgent steps to ensure that the financial capacity of municipalities is jacked up.
He said the provincial minister needed to exercise his powers in terms of the Municipal Finance Management Act as well as the Municipal Systems Act.
”Municipalities are a key delivery arm of the government and sound administration is a prerequisite for the efficient delivery of services.”
Stevenson said an institute for municipal management should be established in the Eastern Cape.
”A bursary scheme needs to be introduced to attract suitably qualified graduates that are keen on a long-term career in municipal finance and budgeting.”
He also called for a performance-based grading system to monitor the capacity of municipalities. — Sapa