Durban - Despite nearly R3 billion being spent on the project, the GO!Durban public transport system was not progressing as intended, with the eThekwini Municipality paying even when work was not done and the project being delayed.
This was revealed in Auditor-General Kimi Makwetu’s 2017/18 municipal audit report released yesterday.
The report says R2.96bn had been spent on the project and delays were caused by negotiations between the municipality and the community and business forums.
“The metro entered into onerous contracts with suppliers for this project (contracts in which costs to fulfil the terms of the contract are higher than the economic benefit received), whereby payments would be made if there was any delay on the part of the municipality. This resulted in payments being made where no construction work was being performed. The delays experienced on this project could negatively affect citizens due to safety concerns, increased travelling costs and traffic congestion,” reads the report.
The city, which accounted for R38.77bn (54%) of the total local government budget of KwaZulu-Natal, remained stagnant on an unqualified opinion with findings on compliance matters.
Irregular expenditure was not prevented and awards were made to suppliers without obtaining declarations of interest. Most of the irregular expenditure was due to invalid deviations and extensions to contracts.
“The leadership sets the tone at the top at any organisation. If an organisation’s leaders are unethical; have a disregard for governance, compliance and control; and are not committed to transparency and accountability, it will filter through to the lower levels.
“Inevitably, a culture of poor discipline, impunity and non-delivery will develop, leading to the collapse of the organisation,” Makwethu said.
The report indicates a net overall regression of nine municipalities from the previous year, comprising 14 regressions and five improvements. There was a substantial decrease in the number of municipalities with unqualified audit opinions without findings (clean audits) from six to one, and an increase in the number of municipalities with modified audit opinions (qualified, adverse and disclaimed) from 14 to 18.
The hostile environment and push-backs at Msunduzi and Richmond municipalities resulted in the late finalisation of these audits, the outcomes of which were excluded from the report.
District municipalities also regressed when compared to the previous year. Of the 10 KZN district municipalities, only Ilembe received an unqualified opinion, with findings on compliance matters. Seven districts received qualified opinions and two received adverse opinions.
Irregular expenditure continued to increase, from R2.33bn to R2.94bn, despite legislation requiring municipal managers to take reasonable steps to prevent such expenditure, reads the report.
“Six municipalities failed to disclose the full extent of their irregular expenditure, indicating that the value could be even higher. eThekwini Metro, uThukela District, uMzinyathi District, uMkhanyakude District and Ugu District collectively accounted for R1.76bn (60%) of the total disclosed value.
“The political and administrative leadership in provincial municipalities were not serious about enforcing accountability for those responsible for irregular expenditure.”
DA eThekwini caucus leader Nicole Graham said local politics was also responsible for the delays in Go! Durban. “The way we appoint contracts in the city is a big problem. We appoint people who are politically connected, not those who could do the work.”The IFP’s Mdu Nkosi said the city was reckless with taxpayers’ money.
Co-operative Governance MEC Sipho Hlomuka vowed to make improvements and promised consequences for those who deviated from municipal processes.