Opinion Leaders

Tenders at heart of municipal rot

Anyone who has shown any interest in this country’s municipal finances in recent years won’t be surprised at the dismal picture painted in Auditor-General Terence Nombembe’s latest report.

24 July 2012 | The Citizen

Current rating: 5 from 1 votes.

Nombembe said that in the 2010-11 financial year only five percent of municipalities had clean audits.  Unauthorised, irregular, fruitless and wasteful expenditure amounted to R11 billion.

As he pointed out, this is tending to become the norm. And that should be deeply troubling.

In trying to analyse the problem it should be helpful to distinguish between the municipal political figureheads and municipal managers, who are supposed to be technocrats.

Unfortunately too many of the managers are also political appointees, lacking the skills and will necessary to ensure  taxpayers’ money is spent in ways that are effective and above board.

The political nature of appointments leads directly to the main reason there is no discernible improvement from year to year: lack of consequences.

In other words people continue to spend money  in unauthorised, irregular, fruitless and wasteful  ways because they can get away with it.

The Auditor-General can point out  shortcomings  as often as possible, but the incompetent and the crooked keep their jobs.

Some commentators are at pains to point out that the A-G’s report doesn’t mean R11 billion has been stolen.

While that is true, Nombembe does highlight the huge problems with “supply chain management”, which is a euphemism for crooks manipulating the tender system.

Too many councillors and officials have connections on both sides of the tender process.

This self-interest is the heart of the rot.  Arrest these cheats. Jail them.

Then municipal finances will improve.

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