Johannesburg - The much-anticipated financial year audit results of municipalities released this week revealed a state of financial deterioration with 92% of the 257 municipalities receiving unclean audits - others not even completing the audit process.
Auditor-General (AG), Kimi Makwetu, painted a bleak picture of an undesirable state of deterioration, total disregard for his office’s recommendations, irregular expenditure in municipalities that amounted to R21.2billion and a hostile audit environment that included threats and intimidation to AG’s staff in most of the provinces.
Midvaal, one of three municipalities in the Sedibeng district, stood out among only 18 municipalities, nationwide, that received a clean audit - the only one in Gauteng.
It’s the fifth time in a row that the DA-led municipality got thumbs up from the AG despite protests in informal settlements, and the recent cash-for-jobs allegations that led to the deputy municipal manager, Thom Peeters, being placed on special leave following a whistle-blower’s allegations of irregular appointments.
“We commend Midvaal for sustaining a clean audit outcome for the last five years. As highlighted in prior years, this was as a result of the municipality institutionalising a number of best practices (which should be replicated across the province), such as timeously monitoring the implementation of action plans to ensure that internal control deficiencies are addressed and effectively applying consequences,” the AG’s report said.
“A clean audit means nothing if it does not translate to tangible things that benefit the residents. The mayor plays an oversight role in ensuring that there is compliance.
We follow disciplinary processes as prescribed by labour relations,” said municipality spokesperson Kagiso Korae, adding that economic development was a top priority.
However, Emfuleni Local Municipality, also in the Sedibeng district, didn’t come out glowing as its neighbour - Midvaal.
The 2017-2018 AG’s report revealed an incomplete audit for Emfuleni, a worrying sign for this municipality that continues to hog the spotlight for deteriorating service delivery and corruption.
“The analysis of the audit excludes Emfuleni, of which the audit had not been finalised by the legislated date due to safety concerns in the municipal area, which resulted in a temporary suspension of the audit process,” Makwetu said, in his report.
SEWAGE spills onto a street in Boipatong, Vanderbijlpark, part of the Emfuleni municipality. ITUMELENG ENGLISH African News Agency (ANA)
In 2017 Emfuleni’s former mayor, Simon Mofokeng, was forced to resign following allegations that he accumulated a bill of R1.7million on hotel stays and fast food binges at KFC and Nando’s.
In March, Emfuleni’s former municipal manager, Sam Shabala, and head of supply chain management, Jason Mkhwane, were suspended for an alleged cover-up of forensic reports and internal investigations, conducted over the past few years, which was meant to expose crippling corruption within the municipality’s procurement division and management.
Another official, Potso Mohojane, head of customer care in the revenue management agency, was also suspended in connection with corruption and maladministration.
This is the same municipality where raw sewage flows on the streets as it fails to maintain ageing infrastructure.
Comparing the two neighbouring municipalities, governance expert and political analyst, Sandile Swana, said municipal officials at Emfuleni were not appointed on merit, unlike in Midvaal.
“Every year municipal managers receive an audit letter from the AG on how to improve and Midvaal managers effect those improvements.
“They are able to do so because they appoint competitive staff based on merit.
“In Emfuleni officials are not appointed on merit and that is why there is mismanagement of funds.
“There will always be mismanagement of funds from the supply chain management because of political interventions and appointment of favourite people to run certain tender projects.
“These politicians force supply chain management to develop fake tender projects and appoint their friends to run such projects, the aim is to embezzle money from the municipality,” said Swana.
He referred to an incident where an auditor from the AG’s office was shot at in Emfuleni and forced to abandon the audit process due to safety concerns last October.
“The security arrangements were not satisfactory for the auditor and we could use the political terminology and conclude that Emfuleni had become a no-go area for the auditor,” said Swana.
DA councillor in Emfuleni, Edward von Bodenstein, said the audit “was subsequently finalised and tabled in council” even though it did not make the final report with other municipalities.
“The audit was delayed because a member of the AG’s office was shot in the leg at a guest house in Emfuleni.
“The rot remains in the municipality and until those who are found wanting and have been exposed by the current forensic investigation are brought to book, we cannot improve,” said Von Bodenstein.
However, Emfuleni mayoral spokesperson, Lebo Mofokeng, said the municipality and AG agreed on “arrangements which allowed for the conclusion of the audit”.
“The audit was finalised, notwithstanding the security concerns.
“The mayor is proud of the institutional achievement of an unqualified audit report for the 2017-18 year.
“The municipality is currently receiving support from the Gauteng provincial government and national government departments with a specific focus on water and sanitation and other key priorities to normalise Emfuleni’s urban management and the delivery of service,” said Mofokeng.