POLOKWANE – According to the Auditor-General (AG), Kimi Makwetu, who tabled the results of the year under review last Tuesday, the local municipalility showed unauthorised expenditure of R519 million, irregular expenditure of R297,6 million and fruitless and wasteful expenditure of R480 000.
In tabling his report, Makwetu reiterated that the outsourcing of chief financial officers’ roles and responsibilities to consultants does not promote efficient use of public money. Private companies are thus paid for functions that remain the job of public officials.
“Municipalities need to improve on their planning and monitoring and the use of consultants as well as the development of internal control systems to obtain optimal benefit from the use of consultants,” he said.
He cited high vacancy rates and instability in key positions, coupled with the lack of appropriate competencies, as a threat to sound financial and compliance principles. This further places severe pressure on the ability of municipalities to perform all tasks efficiently and implement adequate action plans to address audit findings, according to the AG.
DA Limpopo Leader, Jacques Smalle said the figures show “a shocking level of mismanagement and maladministration”, given that not a single municipality in Limpopo had a clean audit.
His view is that the province had particularly poor outcomes, which came as a result of “a weak government leadership and accountability”.
“The mismanagement of Limpopo municipalities needs to be brought to an end. Limpopo is largely underdeveloped and effective management at municipal level is of utmost importance to improve the situation. The number of municipalities with findings on compliance decreased in all provinces except Mpumalanga and Limpopo, which remained at the same level,” he said.
Samwu General Secretary, Simon Mathe said they were concerned that despite municipalities constantly pleading poverty when workers demand decent wages, overall municipalities have either fruitlessly or wastefully spent over R1 billion thus robbing South Africans of improved and quality services.
He said although municipalities have spent over R14 billion in irregular expenditure, they are of the view that national treasury should take the blame for this by its failure to ensure that municipalities are properly and adequately funded.
“Despite the directive by the minister of finance that municipalities have to cut down on their expenditure on consultants, municipalities have spent almost a billion rand on consultants. We believe the use of consultants rob South Africans of services and as such urge municipalities to urgently do away with this practice and prioritise the filling of vacancies which now stands at over 25%.
“We are of the view that municipal finance officers and municipal managers who are unnecessarily overpaid should take the blame for the wasted money which has been used to pay for consultants. Samwu is interested in well run and financially sound municipalities, we believe achieving this will help in creating a conducive and healthy relations between our members and the employer,” he said.
According to Polokwane Municipality Spokesperson, Matshidiso Mothapo, the municipality received an improved audit outcome and that the areas of emphasis were as a result of “legacy issues” which they resolved in the year under review.
“We are currently working to ensure all irregular expenditures are ratified and that a proper action plan was put in place.
“The municipality strives for good governance and sound financial management principles,” he said.
