Buffalo City Metro’s independent audit committee has lambasted the city’s poor capital expenditure and called for bosses to embrace consequence management for under-performing officials.
In a report tabled before council a week ago, audit committee chairman Harold Marsberg said meetings held with management revealed there was continuing concern over the internal control environment within BCM “which is not satisfactory and this is indicated by the internal audit reports and past auditor-general SA reports”.
“The audit committee expressed concern regarding the slow spending in terms of capital expenditure.
“It was enquired whether capital expenditure will be fully spent by the end of the financial year considering there is only a quarter year left and the expenditure is currently at 54%,” Marsberg said.
He added that poor spending of capital reflected badly on BCM “as it shows slow service delivery”.
Acting city manager Bob Naidoo however, promised the committee the capital would be fully spent by the end of the financial year.
“Directors have indicated that expenditure on grants is proceeding well, except for the electricity grant which is anticipated to be committed by May 2017,” Naidoo had told the committee at time of the meeting.
According to the audit committee’s report, there are still many funded vacant posts in BCM, which the city has failed to fill.
This is despite mayor Xola Pakati’s announcement in October last year that the new leadership had already met Cooperative Governance and Traditional Affairs MEC Fikile Xasa to discuss filling the most critical senior management positions.
The metro’s supply chain management unit was lambasted for the “slow pace” of implementation of audit recommendations.
Marsberg said the heads of directorates should put drastic measures in place to deal with slow capital spending in order to avoid only spending in the last quarter of the financial year. — mamelag @dispatch.co.za
BCM slated for slow pace of capital expenditure
In a report tabled before council a week ago, audit committee chairman Harold Marsberg said meetings held with management revealed there was continuing concern over the internal control environment within BCM “which is not satisfactory and this is indicated by the internal audit reports and past auditor-general SA reports”.
“The audit committee expressed concern regarding the slow spending in terms of capital expenditure.
“It was enquired whether capital expenditure will be fully spent by the end of the financial year considering there is only a quarter year left and the expenditure is currently at 54%,” Marsberg said.
He added that poor spending of capital reflected badly on BCM “as it shows slow service delivery”.
Acting city manager Bob Naidoo however, promised the committee the capital would be fully spent by the end of the financial year.
“Directors have indicated that expenditure on grants is proceeding well, except for the electricity grant which is anticipated to be committed by May 2017,” Naidoo had told the committee at time of the meeting.
According to the audit committee’s report, there are still many funded vacant posts in BCM, which the city has failed to fill.
This is despite mayor Xola Pakati’s announcement in October last year that the new leadership had already met Cooperative Governance and Traditional Affairs MEC Fikile Xasa to discuss filling the most critical senior management positions.
The metro’s supply chain management unit was lambasted for the “slow pace” of implementation of audit recommendations.
Marsberg said the heads of directorates should put drastic measures in place to deal with slow capital spending in order to avoid only spending in the last quarter of the financial year. — mamelag @dispatch.co.za
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