Auditor-general Tsakani Maluleke says only 28% of municipalities submitted quality financial statements, meaning that the vast majority didn’t have the critical disciplines to prepare and present quality financial reports. File photo.South African municipalities spent R1bn on consultants in a single year, paying them to compile their financial statements for audit — but in some cases these statements were still not credible.
She was briefing the committees on the municipal audit outcomes for the financial year that began in April 2019 and ended in March 2020. Only 28% of municipalities submitted quality financial statements at the beginning of the audit period, said Maluleke, meaning that the vast majority didn’t have the critical disciplines to prepare and present quality financial reports.
Maluleke said municipalities spent about R1bn on consultants to help them compile their financial statements for audit, but still they did not improve. She said the municipality had spent R66m on its finance division but still went out to hire consultants to the tune of R24m for compiling financial statements. The municipality received a disclaimer opinion.
Five municipalities spent R53m among them on consultants compiling financial statements and received adverse opinions, which means the auditor-general did not agree with their financial statements.
Problem is, real professional Consultants that do their work professionally, ethically with due diligence are being overlooked and these entities hire friends/families or even their own companies registered under their close contacts. When blame comes,even legit get the bullets
black excellence
Thanks to B. E. E
Is it that hard to compile Income Statement bafethu🤔
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