Tsakani: Municipalities with clean audits down from 33 to 27

The Auditor-General tabled a consolidated general report on the local government audit outcomes for the 2019-20 financial year to Parliament.

FILE: Auditor-General Tsakani Maluleke on 9 December 2020 delivered the second COVID-19 relief fund audit report in Pretoria. Picture: @SAgovnews/Twitter.

JOHANNESBURG - Auditor-General Tsakani Maluleke said the number of clean audits at the country’s 257 municipalities had gone down from 33 to 27.

Maluleke has tabled a consolidated general report on the local government audit outcomes for the 2019-20 financial year to Parliament.

She said widespread non-compliance with legislation and reported material non-compliance was at 86% of municipalities.

Maluleke said non-compliance with supply chain management legislation was still prevalent, and it significantly contributed to the irregular expenditure of R26 billion in the 2019-2020 financial year.

She added that 64%of municipalities did not provide adequate records even though the cost of financial reporting including consultants amounted to over R5 billion - this was the cost of salaries of finance units and financial reporting consultants.

Only 2% of municipalities used consultants to bridge the vacancy gap, while others paid consultants even though their finance units are well capacitated.

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