With only 21 municipalities achieving a clean audit, more than R1-billion spent on consultants and over R32-billion in irregular expenditure, the auditor general’s report this week unveiled the extent of the meltdown of South Africa’s municipalities.
The auditor general noted that although the majority of municipalities hired consultants to assist in financial reporting services — spending R741-million in total, only R51-million of this cost was as a result of vacancies in municipal finance units. Makwetu’s report was scathing about the province, stating that the widespread lack of financial controls and project monitoring, an ongoing culture of a lack of accountability, and a tolerance of transgressions resulted in a further regression in audit outcomes in the Eastern Cape.
Makwetu also noted that there has been an increase in irregular expenditure, to R32-billion. The biggest culprit was the eThekwini metropolitan municipality in KwaZulu-Natal, which incurred R2.34-billion of irregular expenditure. The report notes that in the 2018-19 financial year, 58% of irregular expenditure was incurred because of noncompliance with the proper procurement process for the construction of toilets at informal settlements and schools.
“Some tender documents were subsequently submitted, but these could not be audited because they did not contain all the required information, such as scoring sheets and advertisements,” reads the report.
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