Pay back the money: Salga to consultants who failed to do work at municipalities
Salga said it is disappointed with the deteriorating level of accountability as shown in the Auditor General report for the year 2019/2020 which was released on Wednesday.
JOHANNESBURG - The South African Local Government Association (Salga) on Thursday said consultants who were paid to provide financial reporting services to municipalities but failed to do so should pay back the money.
Salga said it is disappointed with the deteriorating level of accountability as shown in the Auditor-General report for the year 2019/2020 which was released on Wednesday.
Auditor-General Tsakani Maluleke said 64% of municipalities did not provide adequate records even though the cost of financial reporting, including consultants, amounted to over R5 billion.
Maluleke said the cost of financial reporting consultants was R1 billion.
And only 2% of municipalities used consultants to bridge the vacancy gap, while others paid consultants even though their finance units were well capacitated.
Salga said 59% of submitted financials included material misstatements, so the practice of using consultants unnecessarily must stop.
The association said it would write to all implicated municipalities to investigate, report wrongdoers to professional bodies like SAICA to blacklist them, and demand refunds.