South Africa

Politics, South Africa

Ahead of elections, 2014/15 local government audit paints a full rainbow picture

Ahead of elections, 2014/15 local government audit paints a full rainbow picture

Auditor-General Kimi Makwetu on Wednesday said the 2014/15 local government audit showed “encouraging” improvements, despite the recurrent red flags of tepid municipal leadership, procurement violations and lack of consequences for wrongdoing. It is better than five years ago, and Makwetu could expound on all the municipal numbers down to a line item in the 158-page audit consolidated report. But Co-operative Governance Minister Des van Rooyen didn’t take to journalists’ questions on repeat irregular expenditure and the doubtful financial viability of a significant percentage of councils. “How unpatriotic is our media? That is highly evident from the questions you asked,” said the minister, calling for patriotism to “show the positive”. By MARIANNE MERTEN.

Des Van Rooyen’s narrative of patriotism started a little earlier during Wednesday’s local government audit outcomes briefing. Talking about the need for strong local economies, he called on residents to “play their part as patriots to pay for services”.

There were challenges, but also improvements in the 16-year-old local government system, which replaced “centuries and decades of a system that was not aimed to serve (all)”, he said: “We are not yet there, but we are not where we were before.”

Van Rooyen talked of the back-to-basics programme picking “low hanging fruit interventions” as well as “positive results”, “collaborative efforts” and a database of disciplinary matters – currently there are 2,665 – which would allow the blacklisting of sacked municipal employees. “It is a very, very helpful tool. It’s really ensuring there are repercussions.”

However, the “media bashing” and “all the questions on the negative side” did not assist, Van Rooyen said before calling for patriotism.

The 2014/15 local government audit shows the number of municipalities with a clean bill of health is up by 14, to 54 of the country’s 278 councils, compared to a year earlier. And those municipalities account for R134-billion of the total R347-billion allocations to local government.

The 109 councils, which received an unqualified audit but with findings (areas of improvement), manage another R143-billion. That means 80% of local government money countrywide is spent in councils that have the financial control systems in place to produce financial statements which account for how and where the money was spent.

Of South Africa’s eight metros, only three – Ekurhuleni, eThekwini and Cape Town – have a clean bill of health (an unqualified audit with no findings), while Johannesburg, Tshwane and Mangaung received unqualified audits, but with findings. The two Eastern Cape metros, Nelson Mandela Bay and Buffalo City, remain stuck with qualified audits with findings.

Where it goes wrong, it goes horribly wrong – and from a provincial perspective that’s mostly so in North West, where no council has a clean bill of health, and the Northern Cape and Limpopo, whose two councils with clean audits five years ago no longer have those. Coincidentally, in Limpopo the Vhembe district, which includes Vuwani where community protests erupted over a demarcation dispute, has an adverse audit with findings. That’s the second worst possible audit outcome.

Makwetu, like his predecessor, has a not-so-magic formula for better audit outcomes: solid municipal political and administrative leadership, consequences for wrongdoing, and sticking to the law, particularly on procurement.

For the past few years the Auditor-General’s office has closely worked with councils. Where leaders have stepped up, not only by example but to show courage in dealing with transgressions and poor performance, the audit results have improved.

On Wednesday Makwetu said the area of improving internal controls “does take time for some institutions”, particularly if they are unresponsive. “We do not have the option to be frustrated,” said the Auditor-General, although he acknowledged that, among others, the projects that should have been realised were taking longer. “It’s unfortunate, sometimes it requires patience.”

The 2014/15 local government audit showed legal compliance remained the weakest area, and follow-ups on transgressions: 45% of councils, which incurred unauthorised, irregular and fruitless and wasteful expenditure had not investigated these contraventions.

Leadership, taking ownership for the audit outcomes, and performance assessment were key. “We all rely on the structures of local government to do what they say they can do,” Makwetu added.

In 2011, also a local government election year, there was “a little bit of a dip” in audit performance. With a municipal poll that will bring in a new crop of councillors two months away, the Auditor-General on Wednesday called for “a proper hand-over process” so there would be no regression. “We hope… there will be a safer transitional process,” Makwetu said. DM

Photo: David Douglas Des van Rooyen, then the new South African Minister of Finance, delivers a speech after being sworn in at the Union Buildings in Pretoria, South Africa, 10 December 2015. EPA/ELMOND JIYANE.

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