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City of Cape Town loses clean audit status

The City of Cape Town has gone from being the only metro to receive a clean audit last year, to one where a number of governance issues are now under the spotlight.

FILE: Cape Town Mayor, Patricia de Lille addresses the media at a briefing regarding the drought in Cape Town. Picture: Cindy Archillies/EWN

CAPE TOWN - The City of Cape Town has lost its squeaky-clean audit status.

For the first time in a decade, the Auditor-General has not issued the city with a clean audit for the 2016/17 financial year, citing tender irregularities and loss of income related to the MyCiTi bus service, among the concerns.

Expenditure on security upgrades at Mayor Patricia de Lille's house has also been flagged as irregular.

The Auditor-General says there has been a lack of internal control over the management of revenue from the MyCiTi bus service, and allegations of financial misconduct against senior managers have also not always been tabled before council, as required by municipal law.

Bid specifications for a bus tender also displayed a bias that would have excluded other service providers.

These concerns have all been raised in a legal report commissioned by the city, which has led to Transport Commissioner Melissa Whitehead facing disciplinary action and prompted City Manager Achmat Ebrahim to quit earlier this month.

According to the report, the city's leadership did not exercise adequate oversight responsibility over procurement and disciplinary action.

The report has also highlighted R140,000 spent on the mayor's house as being non-compliant with the Public Office Bearers Act.

(Edited by Shimoney Regter)