Unprotected infrastructure, water and electricity losses costly for Tshwane metro – Auditor General report
Although Auditor-General Tsakani Maluleke report gave the metro a thumbs up for its ability to account for money used during 2019/20 financial year, she raised concerns over the lack of protection of infrastructure which results into vandalism, water and electricity losses hitting the revenue collection hard.
Although the Tshwane metro was given a thumbs up for its ability to account for money the municipality used, the Auditor General’s report raised concerns over unprotected infrastructure, water and electricity losses being costly.
As the 2020/2021 financial year for municipalities comes to an end this month the Auditor General Tsakani Maluleke tabled to parliament on Tuesday the 2019/2020 municipal finance management audit outcomes and the Covid-19 relief expenditure report.
Unlike most municipalities affected by temporary leadership of administrators due to political instability failing to account for billions of rands used, the Tshwane metro was able to account for its spending.
The audit analysis was conducted for over 200 municipalities with a common finding of financial positions of municipalities continuing to plummet.
Tshwane was under temporary administration for seven months last year.
Yet it received an unqualified audit opinion which means they were able to account for monies used.
This despite the metro having flagged facing financial troubles which have been pinned on the R4.4-billion deficit incurred under the leadership of the administrators
While tabling her report, the AG raised concerns over the lack of protection of infrastructure, she said this resulted in vandalism and added more costs for the municipality. She further raised concerns over water and electricity losses hitting hard on the revenue collection.
“In Tshwane, there was a reservoir project that was being vandalised because it was not being safeguarded, the security around there was not up to power,” Maluleke said.
“There was also a wastewater treatment plant in Tshwane where assets were being stolen and infrastructure being vandalised which at some point somebody will have to pay for and this directly affects the ability to deliver services.”
Tshwane was also among the 43 municipalities selected by the AG’s office Covid-19 relief fund fraud and control assessment, procurement and utilisation of PPE and the procurement and installation of water tanks .
On overall key findings for the municipalities, Maluleke said although procurement processes during the Covid-19 outbreak were conducted on emergency basis municipalities did not have sufficient assessment and planning in place. This resulted in the procuring of services and goods on inflated prices and provided poor quality infrastructure.
“Without leadership that sets the right tone at the top, leadership that is ethical, service-orientated, leadership that is committed to instilling principles of accountability, transparency and good governance we will not be able to resolve the pressing matters across local government.”
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Economist Dawie Roodt explained that an unqualified audit opinion with findings meant that the municipality was able to account for the money with the auditor having minor concerns to raise regarding the management of money.
He said the audit opinion was morally a good sign for taxpayers that their monies were spent well.
Tshwane Finance MMC Mare-Lise Fourie said the metro was pleased with the audit findings and attributed that providing stringent financial management and oversight was one of the municipality’s core deliverables.
“Equally, we take note of the points of concerns raised by the AG during the audit process which includes material water and electricity losses. These are driven by aging infrastructure, illegal connections or electricity theft which the city is continuously working to address,” she said.
“We intend to adequately address all the AG concerns while still focused on consistent quality basic services delivery.”
Fourie said the metro was committed to improving revenue collection while they face financial health challenges.
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