CoE loses clean audit status, protesters disrupt council meeting

The City of Ekurhuleni (CoE) has received an unqualified audit opinion for the 2022/23 financial year, losing its clean audit status it received consecutively in the previous three financial years (2019/20, 2020/21 and 2021/22).

The city received its much-awaited Auditor-General (AG) audit report late last month and tabled it in council on March 12.

The city has incurred an irregular expenditure of R21.8m identified by the AG for the 2022\23 financial year.

City manager provides clarity

Giving a summary of the AG report, Ekurhuleni city manager Dr Imogen Mashazi described the outcome of the report as ‘not too bad’.

“It is a mild regression from last year’s report. The city has been receiving three back-to-back clean audits. This year we had a minor regression on two issues, which we have agreed with the AG to address the flagged issues.

“We will work hard to ensure we retain our clean audit status. We have to strengthen our internal controls so that we can go back to our clean status.

“It is not too bad, our financials are green. Performance information is green in terms of service delivery standards to our communities.”

Mashazi pointed out what led to the mild regression were issues around contract management and the supply chain.

“In terms of financial management, there were a few issues that our junior officials did not look into. As a city, we continuously appoint new people and it is upon ourselves to train them. Hence I say we are going to train most of our project managers and bid evaluation committee because that’s where we are experiencing challenges.”

Responding to questions about Moody’s downgrade of the city’s credit ratings further into ‘junk’ status, Mashazi said, “The city’s finances are still fine, we are not a junk status. We do not have an evaluation agreement with Moody’s.”

The city manager said part of the challenges of the municipality are a result of political instability.

“As officials, we take a mandate from the politicians, but there are challenges since we had these coalitions. There will be a continuous fight over this and that, while we as officials must continue to implement what we can, as per requirement,” she explained.

Opposition political parties expressed concerns over the audit outcome and a lack of service delivery, particularly the waste management crisis and failure to pay service providers in time.

Attempts fail to remove the mayor
In a bid to rescue the city, opposition parties are calling for the removal of the mayor and his executive.

ActionSA has tabled a motion of no confidence against Mayor Sivuyile Ngodwana.

The first attempt to remove the mayor failed during the council meeting on February 29, after the meeting degenerated into chaos when fights broke out between EFF and ANC councillors.

A second attempt to remove Ngodwana on March 12 proved unsuccessful as the speaker, Nthabiseng Tshivhenga, deferred the vote for and against the removal of the mayor on the basis that she needed more time to seek a legal opinion on possible amendments to the motion.

The ANC, DA and other smaller parties back the motion against the mayor.
Part of the amendment brought by the ANC to the no-confidence motion against the mayor is that council adopts a resolution that will see the party with the most seats in the council take the mayoral position, a proposal that the EFF opposed.

Meanwhile, the DA called for the council’s dissolution, which will decide to back a motion that could send voters back to the ballot box.

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Protest
The two council meetings on March 12 were rocked by delays, due to protests outside the chambers and extensive debates over the order of the agenda.

Political parties were divided on which meeting between the extraordinary meeting to table the AG report and the ordinary meeting to deal with the no-confidence motion against the mayor should come first.

Residents of Katlehong and Thokoza staged protests over service delivery, while members of the ANC Youth League demonstrated outside calling for the mayor and the EFF MMCs to be removed.

The speaker of the council, Nthabiseng Tshivhenga, had to adjourn the council to address the protesters and accept their memorandum.

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