No consequences for underperforming KDM management

KwaDukuza municipality (KDM) received its 17th consecutive unqualified audit last week, missing out on a clean audit because of repeat findings that continue to plague the municipality.

Consequence management – the ability of the municipality to discipline underperforming or non-compliant employees – is a major recurring problem, while the auditor general (AG) also found two issues with expenditure management.

Irregular expenditure was again flagged, but notably decreased to a five-year low of R48.63-million, down from R68.75-million in 2020/2021.

A first time finding was that the municipality did not always pay their creditors within 30 days as required by the Municipal Finance Management Act.

Repeat findings in procurement and asset management that appeared in 2020/2021, did not repeat in the 2021/2022 year.

“After completing the audit, the AG did not find any irregularities not already disclosed by KDM,” said AG representative, Martin Coates, in an address to council last week.

“The financial health of the municipality is good, with a surplus net current asset position. Overall we highlight that leadership needs to address repeat findings,” he said.

Alongside the AG report, KDM’s internal audit committee chairpersons, Christopher Meyiwa and Nosipho Mchunu, delivered the internal audit report.

They again highlighted the seeming disinterest of senior management to submit audit information timeously.

“A significant amount of information was only presented to the audit committee after the financial year. Coupled with the critical capacity constraints we have in the internal audit unit, it adds to the difficulty of completing the scope of our audit,” said Mchunu.

Meyiwa said the investigation and oversight ability of the Municipal Public Accounts Committee needed to be beefed up to affect consequence management.

“Some of the audit findings had inadequate evidence provided and this has to be investigated. The non-sitting of portfolio meetings, delays in supply chain management processes and the continued vacancy of the director of corporate services position should also be noted,” he said.

While welcoming the unqualified audit, councillors asked the audit committee what the root cause of repeated findings was.

“Basically it boils down to accountability, because we all know what the findings are year-on-year. Some of them are not a quick fix because they are systems based, but the majority can be curbed,” said Mchunu.

“There is excellent consequence management at low levels, but at the level of senior management this falls away. There needs to be disciplinary actions and sanctions when people do not do their jobs, there need to be consequences,” she said.

The auditors were also asked about the perceived gap between audit findings and service delivery.

“The issues in KwaDukuza are very easy to crystallise. I can tell you now what will be in next year’s audit – electricity issues, consequence management and capital under-expenditure. Capital budget issues need to be improved, then that will of course impact on service delivery,” said Meyiwa.

Follow The North Coast Courier on Facebook, Twitter, Instagram & YouTube for breaking news

Telegram Broadcast Service: https://t.me/joinchat/yJULuN8NaCs5OGM0

WhatsApp Broadcast Service: Add The Courier to WhatsApp at 082 792 9405 and WhatsApp your name and surname to be added.