AG report on municipal finances once again highlights the need to implement advanced financial and management systems in municipalities
15 June 2022
The recently issued report by the Auditor-General (AG), Tsakani Maluleke, on the state of municipalities in the country shines the spotlight on the gravity and extent of decay, and large-scale mismanagement in ANC-controlled municipalities.
The report on the 2020/21 financial year indicates, among other things, that irregular expenditure amounting to R20,45 billion was identified at 64% of municipalities, and that in the foreseeable future, 28% of municipalities will no longer be considered going concerns in legal terms.
Only 16% of all municipalities received unqualified audits, and substantive irregularities were found to have occurred at 22 municipalities.
The fact that 64% of municipal debt is considered to be unrecoverable further highlights the unacceptable levels of incompetence in municipal managements countrywide.