Makwetu: 88% of municipalities still awarding tenders unfairly

Auditor-General Kimi Makwetu said that tenders worth nearly a billion rand were awarded to state officials in violation of the Municipal Financial Management Act.

FILE: Auditor-General Kimi Makwetu. Picture: National CoGTA

JOHANNESBURG - Auditor-General Kimi Makwetu said that 88% of municipalities in South Africa are still awarding tenders unfairly and flouting supply chain management compliance.

Makwetu has released the 2017-2018 local government results for the country’s 257 municipalities, finding that only 18 can account fully.

He said that his audit found that 824 suppliers had made false declarations to be paid.

The Auditor-General said that tenders worth nearly a billion rand were awarded to state officials in violation of the Municipal Financial Management Act.

Makwetu said that when he requested reports to audit, municipalities spent another billion rand on consultants to help them to prepare those reports.

"In Limpopo, one of the observations that were made, for example, were that there are a couple of municipalities that have people with limited technical knowledge and so far as the expected role of the CFO is concerned. There was one province among all of them that has spent an extent of R177 million on the services to assist them with issues of financial management and financial reporting."

The Auditor-General was unable to audit procurement in the books of municipalities valued at a further R1.2 billion because municipalities still submitted incomplete information.