A new approach to employment is needed, and growth must come from new seeds, new seed capital, says the writer. Picture: SUNDAY TIMES
The 2019/2020 auditor-general municipal report and the third Covid-19 Relief Special Audit report, presented to parliament by auditor-general Tsakani Maluleke, are distressing for a number of reasons. Chief among these is that the special audit took place during the Covid-19 pandemic that saw 3-million South Africans lose their jobs in April-June 2020.
The report documented a worrying trend of municipalities outsourcing part of their financial responsibilities to private “consultants” — costing them more than R1bn but bringing little improvement in the state of financial reporting. These private consultants took over a range of tasks but were primarily used for asset management and the preparation of financial statements.
In addition to their financial reporting obligations, municipalities are supposed to submit a report on their service delivery performance. In the 2019/2020 financial year, service delivery performance dropped considerably, due to “unreliable performance planning” and blatant flouting of national procurement policies, which undermined the ability to respond to the pressing infrastructural, social and economic needs of their constituencies, often leading to social unrest.
Without any accountability for blatant fraud and corruption, flouting of the procurement process and violations of the Public Finance Management Act, local government officials will continue to be shielded from consequences from provincial, or national, governments. This environment of impunity and lack of will to recover lost funds is reflected in the fact that 48% of municipalities did not investigate the previous year’s irregular expenditure identified by the auditor-general.
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