COGTA committee calls on municipalities to make further improvements on audit outcomes
6 June 2023
The Chairperson of the Select Committee on Cooperative Governance, Human Settlements, Water and Sanitation, Mr China Dodovu, said the briefing by the Auditor General (AG) on municipal audit outcomes presented an opportunity to the members of the committees on cooperative governance to have a deeper and broadened understanding about the financial administration at the municipalities to intensify their oversight role over local government.
Mr Dodovu called on members of the committees to intensify their role to ensure that stability and excellence in municipalities is achieved. The AG, Ms Tsakani Maluleke, presented the 2021/22 municipal audit outcomes to the joint meeting of the Portfolio Committee on Cooperative Governance and Traditional Affairs, and the Select Committee on Cooperative Governance and Traditional Affairs, Human Settlements, Water and Sanitation today.
The committees heard that out of 257 local municipalities, 38 received unqualified audit outcomes with no findings, 104 received unqualified outcomes with findings, 78 received qualified outcomes with findings, six received adverse outcomes with findings, 15 received disclaimed with findings, and 16 were outstanding audits.
The AG told the joint meeting that the timely submission of financial statements and other information for auditing improved from 81% in the previous financial audit cycle to 91% in the 2021/22 financial audit cycle. Without proper financial planning, controls and reporting, municipalities cannot deliver services to the people and account for tax-payers money, she added.
The committees heard that some municipalities use a lot of money to pay consultants, even though little value is derived from their services. Consultants are asked to complete daily financial administrative work, which is supposed to be done by municipal officials. Municipalities who use consultants are generally those who receive bad audit outcomes, the AG pointed out.
The AG also blamed poor financial management and a lack of consequences for poor management to the fact that municipal infrastructure grants are spent on salaries. She said the municipal council and the accounting officers are responsible for the lack of accountability in municipalities.
The Chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs, Mr Fikile Xasa, thanked the AG and the deputy ministers of the Department of COGTA who were also in the meeting. Members of the committees now have a deeper understanding of the current state of financial administration in municipalities, he said.
Issued by Mava Lukani, Parliamentary Communication Services, Media Officer, 6 June 2023
