Chief financial officers at 17 Eastern Cape municipalities have a few months to acquire the right qualifications – or face the axe.
Cooperative Governance and Traditional Affairs Minister Pravin Gordhan instructed his provincial counterpart MEC Fikile Xasa to ensure all conform by next July.
The Daily Dispatch has learnt that affected CFOs include those of Great Kei, Port St Johns, Mbhashe, Ntabankulu, Ikwezi, Intsika Yethu, King Sabata Dalindyebo, Inxuba Yethemba, Emalahleni, Mhlontlo, Makana, Ngqushwa, Sunday’s River and Mbizana municipalities.
The financial performance of these municipalities have also been highlighted in reports by the Auditor-General.
Great Kei in its latest audit received an adverse opinion, with the AG reporting that it lacked skilled and competent finance staff.
Mbizana is the worst case where the municipality has received adverse audit opinions for the past three years where key finance officials lack the minimum skills and competencies.
The AG also reported there has been no progress in supply chain management and in the quality of submitted financial statements.
Ngqushwa, Mhlontlo and Intsika Yethu municipalities received adverse audit opinions while KSD, Ikwezi, Emalahleni, Ngqushwa and Inxuba Yethemba and OR Tambo district received disclaimer audit opinions.
Gordhan has written to MECs in all provinces to explain how senior managers in key municipal positions should be appointed.
He said 170 financial officers in 278 municipalities had no qualifications.
Gordhan said he had asked the MECs to help put an end to abuses of procedure.
Those without adequate qualifications, or who have been improperly appointed, could lose their jobs, but in some instances employees would have an opportunity to acquire the required qualifications and continue in their positions, Gordhan said.
Eastern Cape Cogta spokesman Mamnkeli Ngam said there were a few cases of municipalities with CFOs who did not have relevant qualifications.
“Each case is treated differently. Some have been requested to get proper qualifications by July 2015. In worst cases some will have to vacate their offices,” Ngam said.
He said the department was giving such cases the attention and urgency they deserved. He, however, could not reveal details as the matter was very sensitive.
According to national Treasury regulations, CFOs and directors in metros and large municipalities should have an honours degree, postgraduate certificate or be registered as a chartered accountant with seven years of senior management experience. Their counterparts in smaller municipalities should have a relevant bachelor’s degree and a certificate in municipal finance.
AG Kimi Makwetu a month ago revealed that a majority of Eastern Cape municipalities were run by accounting officers who did not meet the state’s minimum requirements.
In his report, Makwetu revealed that 13 municipal managers, 17 supply chain managers and 17 chief financial officers in the province did not meet minimum competency levels issued by the national Treasury on June 15 2007.
Last month Xasa raised his unhappiness with the audit outcomes of its 45 municipalities. The municipalities performed dismally in the latest 2012-13 audit reports, with seven receiving disclaimer audit opinions.
None of the municipalities in the province received a clean audit, but the number of institutions that received an unqualified audit increased from nine to 12.
Makwetu revealed that irregular expenditure increased significantly from R2.2-billion in the 2011-12 financial year to R3.3-billion during the year under review.
About R3.2-billion of this was incurred due to non-compliance with supply chain management legislation and other applicable regulations. — mphumziz@dispatch.co.za
Shape up or ship out, Gordhan tells CFOs
Cooperative Governance and Traditional Affairs Minister Pravin Gordhan instructed his provincial counterpart MEC Fikile Xasa to ensure all conform by next July.
The Daily Dispatch has learnt that affected CFOs include those of Great Kei, Port St Johns, Mbhashe, Ntabankulu, Ikwezi, Intsika Yethu, King Sabata Dalindyebo, Inxuba Yethemba, Emalahleni, Mhlontlo, Makana, Ngqushwa, Sunday’s River and Mbizana municipalities.
The financial performance of these municipalities have also been highlighted in reports by the Auditor-General.
Great Kei in its latest audit received an adverse opinion, with the AG reporting that it lacked skilled and competent finance staff.
Mbizana is the worst case where the municipality has received adverse audit opinions for the past three years where key finance officials lack the minimum skills and competencies.
The AG also reported there has been no progress in supply chain management and in the quality of submitted financial statements.
Ngqushwa, Mhlontlo and Intsika Yethu municipalities received adverse audit opinions while KSD, Ikwezi, Emalahleni, Ngqushwa and Inxuba Yethemba and OR Tambo district received disclaimer audit opinions.
Gordhan has written to MECs in all provinces to explain how senior managers in key municipal positions should be appointed.
He said 170 financial officers in 278 municipalities had no qualifications.
Gordhan said he had asked the MECs to help put an end to abuses of procedure.
Those without adequate qualifications, or who have been improperly appointed, could lose their jobs, but in some instances employees would have an opportunity to acquire the required qualifications and continue in their positions, Gordhan said.
Eastern Cape Cogta spokesman Mamnkeli Ngam said there were a few cases of municipalities with CFOs who did not have relevant qualifications.
“Each case is treated differently. Some have been requested to get proper qualifications by July 2015. In worst cases some will have to vacate their offices,” Ngam said.
He said the department was giving such cases the attention and urgency they deserved. He, however, could not reveal details as the matter was very sensitive.
According to national Treasury regulations, CFOs and directors in metros and large municipalities should have an honours degree, postgraduate certificate or be registered as a chartered accountant with seven years of senior management experience. Their counterparts in smaller municipalities should have a relevant bachelor’s degree and a certificate in municipal finance.
AG Kimi Makwetu a month ago revealed that a majority of Eastern Cape municipalities were run by accounting officers who did not meet the state’s minimum requirements.
In his report, Makwetu revealed that 13 municipal managers, 17 supply chain managers and 17 chief financial officers in the province did not meet minimum competency levels issued by the national Treasury on June 15 2007.
Last month Xasa raised his unhappiness with the audit outcomes of its 45 municipalities. The municipalities performed dismally in the latest 2012-13 audit reports, with seven receiving disclaimer audit opinions.
None of the municipalities in the province received a clean audit, but the number of institutions that received an unqualified audit increased from nine to 12.
Makwetu revealed that irregular expenditure increased significantly from R2.2-billion in the 2011-12 financial year to R3.3-billion during the year under review.
About R3.2-billion of this was incurred due to non-compliance with supply chain management legislation and other applicable regulations. — mphumziz@dispatch.co.za
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