CPT municipalities fail to get clean audit

The AG says questionable contracts contributed to Cape Town's failure to attain a clean audit.

City of Cape Town.

CAPE TOWN - The Auditor-General (AG) on Monday said the city's failure to attain a clean audit was caused by the awarding of contracts to councillors, their friends and family among others.

The AG's annual report on audits conducted of the province's municipalities has been released.

Most Western Cape municipalities attained unqualified audits, while nine percent received the worst audit opinion.

Two of the key hurdles preventing most of the province's municipalities attaining clean audits were weaknesses in supply chain management and human resources.

Western Cape AG Thandeka Zondi said the City of Cape Town's deteriorating performance was of concern.

"It was awards to employees and councillors mostly."

Premier Helen Zille has vowed to intervene, now that she is aware of the problem.

"I really don't know. We have the oversight powers, and we will certainly oversee this now that we've got this finding. However, the mayor and chief financial officer must give us answers"

In response to a query from Eyewitness News , the city replied the audit outcome was old news, adding it viewed the irregularities as minor.

Meanwhile, Minister in the Presidency, Collins Chabane believes there are no consequences for municipal officials who make bad decisions.

None of the country's metros received clean audits.

Problems cited include service delivery and errors in financial information.

Chabane said he agreed with the AG's views.

"If you look at what the AG raised, part of the issue is that there is no consequences for those who know they are wrong."

He said municipal officials are not always incompetent.