POLOKWANE – The long-awaited report on the Polokwane Municipality’s financial situation did not contain much better news than the previous report last Monday.
The Auditor-General’s disclaimer audit opinion (issued when the AG could not form an opinion, and consequently refuses to present an opinion on the financial statements) had not changed, even though one of two big issues were addressed by the municipality.
The AG’s findings were delayed by interaction with other government agencies such as provincial and national treasury, as well as the department of corporate governance, human settlements and traditional affairs.
The provincial head of the AG’s office, Dirk Strydom, said despite the disclaimer there was a definite improvement in the way the city’s finances were managed.
He said issues related to assets were one of the critical matters that had to be sorted out by the municipality.
Although a reputable company had been appointed to assist the municipality with its asset register, the AG’s office could still not audit the assets.
Transversal issues were another reason the municipality received a disclaimer. Roads, according to the AG, was not the responsibility of the Polokwane Municipality, but the responsibility of the Capricorn District Municipality and roads agencies.
The issue will be discussed further with the roads agencies and national treasury.
Strydom said the AG did not make the rules, but had to abide by them when auditing statements.
Contingent liabilities such as a pending court case was also not disclosed in the municipality’s statements, as it should have been.
Other issues leading to the disclaimer were opening balances of previous financial years which still remained unsolved.
This added to each year’s problems, for exampled, the billing system, was an issue the municipality was to solve with the assistance of national treasury.
“There needs to be an improved analysis of bad debts; the details are not there,” Strydom said.
Discrepancies in meter readings wrongly read, changed and then changed again was also a problem.
Strydom said not all was “doom and gloom” however, as it was not a case of there being no progress.
Mayor Freddy Greaver said he was saddened by the disclaimer, as municipal officials had worked really hard and there was much improvement made, but they respected the AG’s opinion. Greaver said the report would be presented publicly and discussed thoroughly during a special council session to be arranged.
He especially commented on the roads issue, saying he found it harsh that the municipality apparently had no business working on the roads fixing potholes due to no local municipality being allowed to “own” a road.
“It is a temptation to just leave it, as every cent we spend on roads is preparing us for a disclaimer again next year. It’s a sad reality,” he said.
