Auditor-general Kimi Makwetu has raised concerns over the audit results of the province’s two metros – Buffalo City (BCM) and Nelson Mandela Bay (NMBM).
Makwetu presented a brief summary of audit outcomes for the financial year 2013-14 in parliament on Wednesday.
Details of the financial performances of all provinces for the financial year under review are on the AG’s website.
The AG raised concerns with BCM and NMBM as both received qualified audit outcomes with findings – meaning most matters had been dealt with adequately, except for a few issues.
Sarah Baartman district municipality and Senqu local municipality were the only Eastern Cape municipalities which received clean audits for the year under review.
Makwethu said municipalities who manage 99% of the provincial budget do not submit required financial statements “creating a risk that funds may not be used in an economical, effective and efficient manner that enhances return on investment.
“Of particular concern within this group are the two metros, which administer a combined budget of R15-billion that represents 44% of the total provincial municipal budget,” said Makwetu.
He was concerned the two metros were among Eastern Cape municipalities “not able to submit credible and reliable financial statements, which then required material amendments during the audit process”.
BCM and NMBM are the municipalities in which the ruling party cracked the whip by resolving to rope in new faces to run the councils.
The ANC’s national executive committee announced soccer boss Danny Jordaan as Nelson Mandela Bay metro’s new mayor two weeks ago.
The party also roped in seasoned activist Bicksy Ndoni as deputy mayor and former member of parliament Lutho Suka as chief whip.
The Daily Dispatch reported earlier this week the ANC’s provincial executive committee officials had resolved to fire BCM mayor Zukiswa Ncitha and municipal manager Andile Fani.
Citizens will know today who will take over as mayor.
The AG did, however, give credit to the province for having made some strides in trying to improve audit outcomes at some municipalities.
Government launched “operation clean audit” in September 2009, and 2014 was targeted for all municipalities to receive unqualified audits.
The report shows 33% of Eastern Cape municipalities reached this target, but Makwethu said: “There is still a long way to go before all municipalities achieve an unqualified audit outcome. qOnly the Sarah Baartman and Senqu municipalities have reached this milestone.”
BCM and Mandela Bay audits worry AG
Makwetu presented a brief summary of audit outcomes for the financial year 2013-14 in parliament on Wednesday.
Details of the financial performances of all provinces for the financial year under review are on the AG’s website.
The AG raised concerns with BCM and NMBM as both received qualified audit outcomes with findings – meaning most matters had been dealt with adequately, except for a few issues.
Sarah Baartman district municipality and Senqu local municipality were the only Eastern Cape municipalities which received clean audits for the year under review.
Makwethu said municipalities who manage 99% of the provincial budget do not submit required financial statements “creating a risk that funds may not be used in an economical, effective and efficient manner that enhances return on investment.
“Of particular concern within this group are the two metros, which administer a combined budget of R15-billion that represents 44% of the total provincial municipal budget,” said Makwetu.
He was concerned the two metros were among Eastern Cape municipalities “not able to submit credible and reliable financial statements, which then required material amendments during the audit process”.
BCM and NMBM are the municipalities in which the ruling party cracked the whip by resolving to rope in new faces to run the councils.
The ANC’s national executive committee announced soccer boss Danny Jordaan as Nelson Mandela Bay metro’s new mayor two weeks ago.
The party also roped in seasoned activist Bicksy Ndoni as deputy mayor and former member of parliament Lutho Suka as chief whip.
The Daily Dispatch reported earlier this week the ANC’s provincial executive committee officials had resolved to fire BCM mayor Zukiswa Ncitha and municipal manager Andile Fani.
Citizens will know today who will take over as mayor.
The AG did, however, give credit to the province for having made some strides in trying to improve audit outcomes at some municipalities.
Government launched “operation clean audit” in September 2009, and 2014 was targeted for all municipalities to receive unqualified audits.
The report shows 33% of Eastern Cape municipalities reached this target, but Makwethu said: “There is still a long way to go before all municipalities achieve an unqualified audit outcome. qOnly the Sarah Baartman and Senqu municipalities have reached this milestone.”
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos