Where have all the money gone to?
R17.4-million irregular expenditure, R8.1-million fruitless and wasteful expenditure - Auditor General
SECUNDA – Mr Kimi Makwetu, the Auditor General’s, audit for the Govan Mbeki Municipality shows Council had an irregular expenditure amount of R17.4-million in the 2012/13 financial years.
Its fruitless and wasteful expenditure was R8.1-million.
Mr Makwetu said indications are that the Govan Mbeki municipal management did not take full responsibility for the financial statements prepared by their consultants.
“The over-reliance on consultants and a lack of appropriate skills and competencies to process and report financial and performance information resulted in the 2012/13 poor audit outcomes of the Govan Mbeki Municipality.
“Although consultants were used to prepare the financial statements, the financial statements submitted for auditing were not accurate.”
Mr Makwetu said management was furthermore unable to explain some of the assumptions made by consultants in arriving at the amounts included in the financial statements.
“The financial health of the municipality remained unchanged, as spending of grants continued to be under the budgeted amount.
“Poor planning of capital spending resulted in project delays.
“The delayed payment of creditors continued to be the norm at the municipality.”
The Ehlanzeni District Municipality and the Steve Tshwete Municipality were the only municipalities in Mpumalanga to have maintained clean audits for the last four years.
