Provincial Audit Outcomes: DA-run Western Cape tops provincial audit results

The Auditor-General has rated the DA-run Western Cape the province with the best financial administration in South Africa for the 2009/10 financial year. Every provincial department and all public entities below them received unqualified audits, a feat unmatched by any other province. It also marked a significant improvement on previous provincial audits, achieved when the ANC was in control of the province. The results constitute further evidence that where the DA governs, it delivers a better run administration than the ANC. And, because that administration is well managed, service delivery is of a higher standard.

A full breakdown of the audit outcomes for every province follows at the end of this statement.

There are two elements to achieving a clean set of audit outcomes. First and foremost, it is testament to an efficient and professional provincial treasury which oversees compliance with best auditing practice, record keeping and general financial management. We are lucky in the Western Cape to have an excellent team and credit must go to them.

Secondly, it requires political leadership that does not micro-manage, allows professionals to do their work, does not meddle with good appointments and does not mis-spend public money. In all of these three areas, the DA-run province differs from the ANC. We do not practice cadre deployment - people are hired and managed on merit.

We do not indulge in fruitless and wasteful expenditure; indeed, austerity has been one of the Western Cape's hallmarks. And we do not interfere and attempt to control every element of governance. This is the blue sky between the DA-run Western Cape and other ANC-run provinces.

In assessing the Western Cape's improved year-on-year performance, the Auditor-General said that it is "pleasing to note that seven (54%) departments, including the Provincial Legislature registered a clean audit opinion (financially unqualified opinion with no findings on predetermined objectives and/or compliance with laws and regulations) for the year under review, which is a 100% increase compared to 2008-09." Indeed, 8 (62%) of the province's 13 departments improved upon their previous year's performance. None regressed. Of the province's 12 entities, seven (58%) registered improved audit outcomes, while none regressed.

2009/10 Provincial Audits: Key Facts:

* In total, 10 ANC run departments received disclaimers

* In total, 24 ANC run departments received qualified audit opinions

* 7 out of the 8 ANC-run health departments received qualified audits or disclaimers (4 Disclaimers, 3 Qualified opinions), making it the worst run ANC department across the country.

* 6 out of the 8 ANC-run education departments received qualified audits or disclaimers (3 disclaimers, 3 Qualified opinions), making it the second worst run ANC department across the country.

* The worst performing province was the North West with more than half its departments getting a qualified opinion or worse (8 out of 13 - 2 disclaimers, 6 qualified opinions)

The Western Cape's financial probity has led to robust and dependable infrastructure development. For instance, the province played a major role in assuring that all provincial municipalities spent 100% of their Municipal Infrastructure Grants (MIGs), which focus infrastructure development in poor communities. Working with municipal leaders on a monthly basis, the province kept track of municipal MIG spending, providing support where needed. Because the DA cares about the finances of all elected bodies under its leadership, even if they are not DA-led, we made it a priority to work with all provincial municipalities to spend their MIGs in a timely fashion.

In contrast to the DA governed Western Cape's seven clean audits and six unqualified audits (with comments), the North West received six qualified audits and two disclaimers. Five other provinces also had at least 4 qualified audits or disclaimers each.

We also note with concern the performance of certain departments in other provinces, especially education and health. Three provincial education departments received qualified audits and three more received disclaimers. Meanwhile, three provincial health departments received qualified audits and four more received disclaimers. This means that 75% of ANC-led provinces are failing to spend their education money properly and 85% are failing to deliver health care in a financially responsible manner.

These results lead to a conclusion that we believe is becoming clearer as time goes on: where the DA governs, it governs well; where the ANC governs, it governs poorly. Our financial performance shows that South Africans have an alternative to the mismanagement in ANC provinces. Below are the Auditor-General's findings that prove our assertion.

Provincial Department Audit Outcomes 2009-10:

Western Cape

Education: Unqualified
Health: Unqualified
Local Government and Housing: Unqualified
Provincial Premier: Unqualified
Transport and Public Works: Unqualified
Agriculture: Unqualified
Community Safety: Unqualified
Cultural Affairs and Sport: Unqualified
Economic Development and Tourism: Unqualified
Environmental Affairs and Development Planning: Unqualified
Provincial Treasury: Unqualified
Social Development: Unqualified
Provincial Parliament: Unqualified

Eastern Cape

Education: DISCLAIMER
Health: DISCLAIMER
Economic Development and Environmental Affairs: QUALIFIED
Housing: QUALIFIED
Agriculture: Unqualified
Local Government and Traditional Affairs: Unqualified
Office of the Premier: Unqualified
Provincial Treasury: Unqualified
Public Works: Unqualified
Roads and Transport: Unqualified
Safety and Liaison: Unqualified
Social Development: Unqualified
Sport, Recreation, Arts and Culture: Unqualified
Provincial Legislature: Unqualified

Free State

Health: DISCLAIMER
Police, Roads and Transport: DISCLAIMER
Cooperative Governance and Traditional Affairs: QUALIFIED
Human Settlements: QUALIFIED
Education: QUALIFIED
Public Works and Rural Development: QUALIFIED
Agriculture: Unqualified
The Premier: Unqualified
Economic Development, Tourism & Environ Affairs: Unqualified
Social Development: Unqualified
Sport, Arts Culture and Recreation: Unqualified
Free State Legislature: Unqualified
Free State Provincial Treasury: Unqualified

Gauteng

Health: DISCLAIMER
Infrastructure Development: QUALIFIED
Agriculture and Rural Development: Unqualified
Community Safety: Unqualified
Economic Development: Unqualified
Education: Unqualified
Housing: Unqualified
Local Government: Unqualified
Roads and Transport: Unqualified
Social Development: Unqualified
Sports, Arts, Culture and Recreation: Unqualified
Gauteng Shared Service Centre: Unqualified
Provincial Legislature: Unqualified
Gauteng Provincial Treasury: Unqualified
Office of the Premier: Unqualified

KwaZulu-Natal

Agriculture, Environ Affairs & Rural Development: QUALIFIED
Health: QUALIFIED
Public Works: QUALIFIED
Social Development: QUALIFIED
Cooperative Governance and Traditional Affairs: Unqualified
Economic Development and Tourism: Unqualified
Education: Unqualified
Human Settlements: Unqualified
Office of the Premier: Unqualified
Sport and Recreation: Unqualified
The Royal Household: Unqualified
Transport: Unqualified
Provincial Legislature: Unqualified
Arts, Culture and Tourism: Unqualified
Community Safety and Liaison: Unqualified
Provincial Treasury: Unqualified
            
Limpopo

Education: DISCLAIMER
Health: QUALIFIED
Public Works: QUALIFIED
Social Development: QUALIFIED
Agriculture: Unqualified
Economic Development, Environment and Tourism: Unqualified
Local Government and Housing: Unqualified
Office of the Premier: Unqualified
Provincial Treasury: Unqualified
Roads and Transport: Unqualified
Safety, Security and Liaison: Unqualified
Sport, Arts and Culture: Unqualified
Provincial Legislature: Unqualified

Mpumalanga

Education: QUALIFIED
Health: QUALIFIED
Agriculture and Land Administration: Unqualified
Community Safety, Security and Liaison: Unqualified
Culture, Sport and Recreation: Unqualified
Economic Development and Planning: Unqualified
Housing: Unqualified
Local Government: Unqualified
Public Works, Roads and Transport: Unqualified
Social Development: Unqualified
Office of the Premier: Unqualified
Mpumalanga Provincial Legislature: Unqualified
Finance: Unqualified

North West

Education: DISCLAIMER
Public Works, Roads & Transport: DISCLAIMER
Human Settlements: QUALIFIED
Local Government and Traditional Affairs: QUALIFIED
Public Safety: QUALIFIED
Office of the Premier: QUALIFIED
Social Development: QUALIFIED
Provincial Legislature: QUALIFIED
Agriculture, Conservation, Environment & Rural Dev: Unqualified
Economic Development and Tourism: Unqualified
Health: Unqualified
Provincial Treasury: Unqualified
Sport, Arts and Culture: Unqualified

Northern Cape

Health: DISCLAIMER
Transport, Roads and Public Works: DISCLAIMER
Education: QUALIFIED
Sport, Arts and Culture: QUALIFIED
Agriculture and Land Reform: Unqualified
Economic Affairs: Unqualified
Housing and Local Government: Unqualified
Office of the Premier: Unqualified
Provincial Treasury: Unqualified
Safety and Liaison: Unqualified
Social Services and Population Development: Unqualified
Tourism, Environment and Conservation: Unqualified
Provincial Legislature: Unqualified

Statement issued by James Lorimer MP, Democratic Alliance Shadow Minister of Co-operative Governance and Traditional Affairs, October 20 2010

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