Only 5% of local governments have clean audits, says AG

The number of clean audits remained at 5% the past three years, he said on Tuesday in Pretoria.

Releasing the 2011/12 consolidated report on local government audit outcomes, Makwetu said the lack of improvement was cause for concern.

"That stagnation has come with some improvements in a number of municipalities, where even though the clean audits have remained the same, new ones have come into that space and some have gone backwards."

The number of municipalities with unqualified audit outcomes – with no findings (clean) – in the 2011/12 report, was a low 17 out of 278.

The total number of clean audits in the 2010/11 reports was also 17.

"From the mapping we have set out [in the 2011/12 consolidated audit report], which points to the different of audit opinions, you will find that there is a glaring absence of green. Green represents the clean audits in the report," Makwetu said.

"You will also find there is quite a number of reds and purples. Largely, that is the picture we are having across the country, which reflects a number of reversals, some improvements and generally a stagnant picture."

'Cadre deployment'
The auditor general completed the audits of 317 (94%) of the 338 entities which submitted financial statements by August 31 last year.

Local government consisted of eight metropolitan municipalities, 44 district municipalities, and 60 municipal entities.

The Democratic Alliance said the poor performance of municipalities was a result of cadre deployment.

Spokesperson John Steenhuisen said there was a clear lack of leadership, accountability, and commitment as a result of this.

"I will write to the chairperson of the portfolio committee on co-operative governance and traditional affairs to request that the auditor general's report be tabled before the (parliamentary) committee for scrutiny," said Steenhuisen.

"I will also table a motion for debate in Parliament that the house, as soon as possible, consider the disastrous impact that cadre deployment has had on service delivery, specifically on the poor."

The South African Local Government Association (Salga) said the previous auditor general report had identified risks in local government and human resource management, areas which continued to plague municipalities in the latest 2011/12 audit outcomes report.

"Despite the fact that the clean audit concept is not known anywhere else in the world, it continues being a pursued outcome for South African municipalities.

However, the reputational damage and perceptions generated by the clean audit concept cannot be measured," Salga said in a statement.

The South African Institute of Chartered Accountants expressed concern over the slow progress made by municipalities to achieve clean audits.

The lack of human resources capacity in municipalities showed the need to speed up skills development and improve capacity, said the institute's public sector project director Mohammed Lorgat. – Sapa


Mabuza’s ‘distant relative’ scored big

Eskom’s woes are often because of boiler problems at its power plants. R50-billion has been set aside to fix them, but some of the contracts are going to questionable entities

ANC faction gunning for Gordhan

The ambush will take place at an NEC meeting about Eskom. But the real target is Cyril Ramaphosa

What the law could clarify this year

Lawfare: Major developments are on the cards where law and politics meet, including the first amendment to South Africa’s Bill of Rights

The secret ‘Warmonger’ at the SSA

A listening device acquired by the agency is at the centre of an alleged R600-million fraud operation

Press Releases

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.

Is your tertiary institution is accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

Is your tertiary institution accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

VUT chancellor, Dr Xolani Mkhwanazi, dies

The university conferred the degree of Doctor of Science Honoris Causa on Dr Xolani Mkhwanazi for his outstanding leadership contributions to maths and science education development.

Innovate4AMR now in second year

SA's Team pill-Alert aims to tackle antimicrobial resistance by implementing their strategic intervention that ensures patients comply with treatment.

Medical students present solution in Geneva

Kapil Narain and Mohamed Hoosen Suleman were selected to present their strategic intervention to tackle antimicrobial resistance to an international panel of experts.