Auditor normal Tsakani Maluleke
Poor audit outcomes in native authorities proceed unabated, with solely 34 of South Africa’s 257 municipalities acquiring clear payments of well being.
Auditor normal Tsakani Maluleke highlighted this stark discovering when her workplace offered its 2022-23 consolidated normal report on native authorities audit outcomes to parliament on Tuesday.
In her report, Maluleke referred to as on “all roleplayers within the accountability ecosystem to work intentionally and with urgency in direction of a tradition of efficiency, accountability, transparency, and institutional integrity that may finally lead to a greater life for the individuals of South Africa”.
The auditor normal mentioned regardless of commitments made by these involved, the tempo of enchancment has been “sluggish, with little affect on the lives of bizarre South Africans”.
The development of poor audit outcomes had endured, with 36 municipalities regressing for the reason that 2020-21 audit cycle, whereas solely 45 confirmed some enchancment.
Maluleke mentioned many municipalities have been caught in a cycle of unqualified audit opinions on monetary statements, however with findings on efficiency reporting and compliance with key laws. She expressed concern that 77 municipalities had remained on this class for the reason that finish of the earlier administration’s time period, exhibiting little effort to advance to a clear audit standing.
Whereas just a few municipalities have maintained clear audits over a number of years, exemplifying sound monetary and efficiency administration practices, the general image stays bleak, she mentioned. Compliance with laws continues to be a big downside, with 86% of municipalities receiving materials compliance findings, barely worse than in earlier years.
Maluleke mentioned 45% of municipalities didn’t adjust to laws on strategic planning and efficiency administration.
“Moreover, 48% of municipal efficiency reviews included unreliable or unuseful info, complicating efforts to evaluate municipal efficiency and tackle service supply shortfalls.”
Maluleke urged nationwide and provincial governments to accentuate their assist for municipalities, stressing the necessity for sustained efforts to enhance their monetary well being and repair supply.
“Native authorities’s incapability to adjust to laws stays a big impediment, with 86% of municipalities receiving materials compliance findings. This marks a slight regression from earlier years, with compliance findings at 85% within the final 12 months and 83% in 2020-21,” she mentioned.
Frequent delays, value overruns and poor-quality work have been cited as frequent issues, whereas new infrastructure was usually not put into use promptly, and current infrastructure continued to deteriorate due to insufficient upkeep.
Maluleke mentioned poor monetary administration was nonetheless prevalent, with municipalities dropping income due to insufficient billing and assortment practices, and infrastructure neglect resulting in water and electrical energy losses. Monetary mismanagement instantly affected service supply, with unpaid collectors, together with Eskom and water boards, threatening entry to primary companies for households and hindering enterprise operations.
On a optimistic be aware, Maluleke mentioned 18 municipalities, primarily in KwaZulu-Natal, Mpumalanga and North West, had moved out of the damaging class in the course of the present administration.
“Fourteen municipalities obtained disclaimed opinions in 2022-23, together with two whose audits have been finalised after the 31 March 2024 closing date for this report,” she mentioned, including that the assist supplied by provincial governments had led to optimistic indicators of enchancment.
Municipalities with clear audits, significantly people who have maintained this standing over a number of years, typically exhibited sound monetary and efficiency administration practices.
“These municipalities handle initiatives successfully, adhering to timelines, budgets and high quality requirements, and have well-functioning management environments that assist improved efficiency and repair supply,” Maluleke mentioned.
“The submission of economic statements by the legislated date has improved, with 94% of municipalities assembly the deadline in 2022-23, up from 91% in 2021-22 and 81% in 2020-21.”
The late submission or non-submission of economic statements was the first purpose for the delayed completion of 2022-23 audits for 10 municipalities, though seven of those audits have since been finalised, Malulele mentioned.