By Lehlohonolo Lehana.
Auditor General (AG) Tsakani Maluleke has warned against poor political leadership and how unstable coalition-led municipalities are negatively impacting local government audits.
Of the country’s 257 municipalities, only 38 received a clean audit, from 41 the previous year, highlighting the effect of instability in local government blighted by inadequate skills, cash flow challenges, governance failures and a lack of accountability and consequence management.
Maluleke delivered the report before the Standing Committee on the Auditor General in the National Assembly on Wednesday.
She said an adverse audit opinion means the submitted financial statements are unreliable and that they cannot be used for oversight and decision-making.
Maluleke highligted to MPs the city of Tshwane had regressed from an unqualified audit opinion to an adverse audit opinion in the 2021/2022 auditor’s general report for local government.
The city also spent over R100 million on consultants to help them to deal with asset management.
“On the adverse findings, you will find that R176 million has been spent by six municipalities. Much of it relates to the City of Tshwane which over many years has been spending over R100 million a year on consultants to help them deal with asset management instead of investing in the skills in-house to deal with asset management, “Maluleke said.
Maluleke also flagged the instability of coalition governments for the failure to deliver quality service delivery.
She says that the AG’s office has also issued a material irregularity on the Rooiwal Wastewater treatment plant.
“Where there is the pollution of water sources which harms the public and the environment. In a number of instances, these MIs are being responded to, but however what we witnessed happening in Tshwane and Hammanskraal, as tragic as that is and where it should never have happened where people lost their lives. We believe that this is a reminder of the urgency of us acting on these things. It is a harsh reminder of the impact of continued neglect on these things at the local government but in the other spheres of government.
Hammanskraal has been at the centre of a recent cholera outbreak which has killed 24 people.
Fruitless and wasteful expenditures also increased in this financial year to R4.7 billion.
The Auditor-General said local government has been characterised by “dysfunctional municipalities, financial mismanagement, council and administrative instability, and crumbling municipal infrastructure”.
She pointed out that this leads to deteriorating standards of living and service delivery failures, which result in protests.
“The big summary I would offer is that there is a deterioration if you look right across the board. Even in those provinces where you see some improvements, there is concern that that improvement is not happening at the type of pace [required].”