Fin24

Most municipalities fail audit test

2012-07-23 14:49

Johannesburg - Only 5% of municipalities obtained clean audit reports in the financial year 2011/2012, the auditor general disclosed on Monday.

However, auditor general Terence Nombembe said he was excited by the fact that six new municipalities had joined the clean audit category, taking the number to 13.

The municipalities with clean audits were in KwaZulu-Natal, Limpopo, Mpumalanga and the Western Cape.

None of the municipalities in the Eastern Cape, Free State, Gauteng, Northern Cape and North West received clean audit reports.

But Nombembe said almost half (45%) obtained unqualified audit reports but with concerns.

These municipalities received unqualified reports after corrections during the audit process.

Among the issues identified as a challenge were procurement, service delivery, and errors in financial information.

None of the country's metros received clean audits, while 13% of municipalities did not submit financial statements in time for auditing.

There are 343 municipalities in the country.

Nomembe commended municipalities which were putting in an effort to obtain clean audit statements.

"They are moving forward towards the clean audit space by consistently committing to take ownership of municipal performance practices, insisting on adequately qualified staff and effective performance management practices," said Nombembe.

 

Comments
  • corne.coetzee.92 - 2012-07-23 15:02

    And this is acceptable? When will the people learn, when will they ever learn?

      citizen.kane.35 - 2012-07-23 15:13

      Every year the auditor general says the same thing and every year government vows to clamp down..its all smoke and mirrors, they(the ANC) have supported this grand theft since 1994, nothings going to change

      oomkrummel.krummel - 2012-07-23 15:16

      And will the masses protest..NO , ... Will they vote for them again YES..... Will anybody say well done D.A....don’t be silly....

      rontheogre - 2012-07-23 15:18

      Citizen, how right you are. Smoke blown out of you know where while looking in the mirror at the only person of importance in their lives.

      patrick.buckley.712 - 2012-07-23 15:34

      Come on guys, there are only so many hours in a day. Shopping for Mercs and BM's takes time...... You cannot expect our municipal top dogs to concern themselves with trivialities like for example, doing their jobs.....

      fussed.anderson - 2012-07-23 15:50

      5% pass our non educated education does better

      Gcwabe.KaMavovo - 2012-07-24 09:44

      @Alicia. What are you DA-cheerleaders smoking? Here's the full story: Of the 13 municipalities that got clean audits, 5 are in KZN, 4 in Mpumalanga, and 2 each for Western Cape and Limpopo. Now the DA-controlled Western Cape has 25 municipalities. This means that 23 of them were found not to be clean, including the City of Cape Town itself.

  • gerhard.kress.3 - 2012-07-23 15:07

    Shame on you JZ.

      gerhard.kress.3 - 2012-07-23 15:08

      JZ you stand for mediocrity.

  • martin.britchford.5 - 2012-07-23 15:08

    limpopo, kzn,mpumalanga hahahahahahaha yeah right, pull the other one

  • nicholas.graan - 2012-07-23 15:09

    Its called Cadre Deployment. Party loyalty before skills. Despite collapsing municipalities the ANC steadfastly and stubbornly continues with this failed program.

      appietrader - 2012-07-23 16:23

      Not really deployment, but a BEE right to steal from the ratepayers. This is loyal cadre benefit with a job... without skills.......and who cares..... the anc is in government. They can't even run delivery of school books, how can this bee's run municipalities??

  • bmaestro - 2012-07-23 15:12

    what a shame

  • shirley.steenkamp - 2012-07-23 15:16

    And Zumafiddled whilst South Africa burnt!!!!

      tommo.too - 2012-07-24 01:54

      What was Zuma fiddling with?? That is the question!!

  • teddy.beer.319 - 2012-07-23 15:17

    Mirror image of the school pass rate in Limpopo.

  • leonard.rom.7 - 2012-07-23 15:23

    and still no service delievery !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • koos.vandermerwe.75 - 2012-07-23 15:27

    I for one am not all too excited. Judging from the “quality” of the auditors I’ve seen this year. Seriously, someone sitting in front of you “reading” questions to you that was setup by someone else.... You could tell these guys anything and even if you did give them an incorrect answer they would not have been any wiser as to any problems. You cannot send a train driver to review a sea captain. Anyone else had this experience?

  • zwelithini.gagayi - 2012-07-23 15:27

    I'm sure the auditor general must have been refering to 2010/2011 financial year audits, which is old news as these were finalised by the of the year last year. There is no way he could been referring to 2011/2012. The year end of 2011/2012 was only only last month. The municipalities will be submitting the annual financial statements and only at the end of August and then they will be audited. So it is impossible for anyone to know the results today. Lastly can anyone explain to me what a clean audit is as opposed to an unqualified audit report.

      koos.vandermerwe.75 - 2012-07-23 15:37

      Do you know when municipalities do their year ends?

      piet.strydom - 2012-07-23 15:59

      A clean report is one where there were no concerns identified during the audit which had to be rectified before being able to give an unqualified opinion. An unqualified opinion means that the accounts are reliable and can be used to make financial decisions on.

  • ddviljoen - 2012-07-23 15:31

    Since when is 13 municipalities 5% of 343? Less than 4% of municipalities obtained clean audit reports. Sickening.

      tommo.too - 2012-07-24 01:59

      This is what happens when no maths books at school. Then 5% can even be 13 og 343 ....

  • BigChiefPlumbPudding - 2012-07-23 15:35

    Viva

  • Henk - 2012-07-23 15:38

    Brilliant!!!!

  • john.loveland.9 - 2012-07-23 15:39

    So only 17 Municipalities got clean reports, but 45 didn't even get to submit statements.... and thats good news? So much for clean governance and accountability....

  • tatsee - 2012-07-23 15:45

    Municipalities actually have what I like to call an'incompetence budget'-This is a budget for outside consulting firms (Accounting,engineering,technical firms)that are called in year in year out to come and sort out the municipality's messes caused by the organisation's incompetence.The reason why these municipalities fail audits is the fact that most municipalities hire incompetent Municipal Managers,CFOs and other senior officers who have no clue whatsoever how to manage a spaza shops let alone a whole Municipality.After these consultants clean up the messes and also give and at times install safeguards to ensure that these messes don't happen again,for some reasons that are unknown under the sun the same mistakes and errors are repeated and the same consultants are called back in!I guess it means more business and bucks for outside consulting firms!VIVA ANC VIVA!

  • paul.korb.9 - 2012-07-23 15:46

    where can you get a list of the Municipal audit report?

  • philip.darne - 2012-07-23 15:47

    All 5 % in Western Cape?

      anthonycharles.williams - 2012-07-23 16:01

      well spotted

  • Erna - 2012-07-23 15:51

    The AU shouldn't get excited so easily!

  • siphiwo.maurice - 2012-07-23 15:52

    Sad state of affairs when so low is a percentage of clean municipalities. When will they be clean on counts? This is chocking in the extreme.

  • MSGRule - 2012-07-23 15:52

    It is really time to get the cANCer out of governing. It is going to take 50 years to fix the country after the gravy train has run out of fuel.

  • johan.vanheerden.737 - 2012-07-23 15:55

    and who is suprised?

  • pierre.hough - 2012-07-23 15:56

    13 municipalities in 18 years. Will take another 457 years to get the remaining 330 municipalities clean. They deserve a Bells!!

      maureen.churchill.9 - 2012-07-24 06:19

      I'll drink to that

  • geraldsebanda - 2012-07-23 16:03

    the most basic process is now called a "challenge"

  • daniel.v.wyk - 2012-07-23 18:27

    Note to self: NEVER trust any politician / political party! They are all corrupt and in it for their own personal benefit!

  • lacrimose.wolf - 2012-07-23 20:34

    "For one true measure of a nation is its success in fulfilling the promise of a better life for each of its members. Let this be the measure of our nation." JFK [http://www.jfklibrary.org/Research/Ready-Reference/JFK-Quotations.aspx}

  • rodney.green.9406 - 2012-07-24 03:12

    Wow, happy suckling sounds are heard accross the length and breadth of the land and those doing the sucking are happy because they know that the poor rate payers and tax payers are legally obliged to continuously keep replenishing the troughs.

  • maureen.churchill.9 - 2012-07-24 06:18

    Western Cape has done it again clean audit, well done!!!!!!!!!!!!!!!!!

      Gcwabe.KaMavovo - 2012-07-24 09:48

      Did what exactly? Only manage 2 clean audits out of 25?

  • Wayne - 2012-07-24 07:31

    The non compliant municipalities should be named and shamed and serious action must be taken against the management of those municipalities. How can we possibly justify a 5% compliance ratio (13 out of 343 municipalities)? On any scorecard thats a resounding failure!

  • winifred.watson.9 - 2012-07-24 11:33

    If Government could get back every cent that has been pilfered which estimates to be BILLIONS. just imagine, instead of trying to take away the wealth from the minority, they could have destributed the pilfered money to the poor. Just imagine how that would have uplifted them. No but these poor people are exploited by their very own and given dreams of one day the manna is going to fall from heaven. Sorry, folks, it wont fall on you, it will still find its way to the very people who utter these promises. Life is not easy, ask anybody. You have to grind your way through.

  • courtney.baird.71 - 2012-07-24 16:54

    Name them..................

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