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CT loses clean audit status, opposition want review of financial statements

The city has received a unqualified audit for the 2016-17 financial year, with the Auditor-General citing a leadership failure for not exercising adequate oversight over tender processes.

Mayor Patricia de Lille briefing the media on the water crisis in Cape Town on 18 January 2018. Picture: Graig Lee Smith/EWN

CAPE TOWN - Opposition parties in the Cape Town council say they want the Auditor-General to review previous years' financial statements in light of its latest report that has raised governance issues in the city.

The city has lost its clean audit status for the 2016-17 financial year, with the Auditor-General citing a leadership failure for not exercising adequate oversight over tender processes.

He says that there has been a lack of control over revenue management relating to the MyCiTi bus service and there's been bias in the awarding of a bus tender.

The African National Congress (ANC) and African Christain Democratic Party (ACDP) says that the latest audit opinion raises concerns about the financial statements of previous years.

The ACDP's Grant Haskin: "We are going to expect that previous year's financial reports be re-audited, at least going back to 2014/15."

The city's financial statements also flag an amount of R140,000 as being irregular, believed to be expenditure on the mayor's home.

The ANC's Xolani Sotashe: "It will be interesting how the mayor is going to explain to the public why she lied."

Fifteen investigations were ongoing at the time of the city's audit related to corruption in tender processes.