OPINIONISTA: Groundhog Year: Municipal audit shows billions missing due to corruption and incompetent finance staff

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The Auditor-General has released the municipal audit outcomes for 2019/20. A total of 22 councils were unable to account for R6-billion and received disclaimers. This, despite spending R1-billion on consultants to help compile financial statements. Where there was shoddy record-keeping, service delivery was also lacking. Madibeng in North West and the Chris Hani District Municipality in the Eastern Cape are standout cases, for all the wrong reasons.

When it comes to South Africa’s more than 270 municipalities, there’s not much money to go around in service of residents, but the fact remains that the wrong hands remain in control of the tills.

Auditor-General Maluleke presented the latest municipal audit results on Tuesday to a joint sitting of Parliament’s Standing Committee on Public Accounts and the Standing Committee on Auditor-General. Doing this defeats the purpose of monitoring, and often leads to fruitless, wasteful, unauthorised and irregular expenditure, according to Treasury.

A particularly vexing element of this is that the councils paid R1-billion to consultants for assistance in compiling financial statements for auditing. Chris Hani municipality paid R66-million to consultants and another R24-million to one consultant to assist it to compile financial statements, but has nothing to show for it.

 

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