DESPITE employing their own accounting officers, KwaZulu-Natal municipalities spent almost R7-million on consultants, brought in to prepare their 2012/13 financial statements ahead of scrutiny by the Auditor-General.
According to the Democratic Alliance (DA) KwaZulu-Natal co-operative governance and traditional affairs (Cogta) spokesman George Mari, this damning figure forms part of a September parliamentary reply by Cogta MEC, Nomusa Dube, to questions by the DA.
According to the reply, a total of 26 municipalities in the province used consultants. Sixteen went on to receive unqualified audits, seven received qualified audits and three were given disclaimers. Not one of the municipalities that used consultants received a clean audit.
When asked why consultants were used, the MEC’s answer of ‘a lack of capacity’ is cited in the majority of cases. Mr Mari said the DA was extremely disturbed by this.
He pointed out that legislation governing municipal financial affairs stipulated that a municipality’s accounting officer was responsible for the submission of the annual financial statements for audit.
“The MEC’s statement – that the municipalities that received unqualified audits received value for money while the 10 that had disclaimers or qualified audits did not – displays a worrying grasp of this regulation. This is supported by the fact that the use of consultants continues unabated with no apparent effort to curb it,” he said.
He pointed out that KwaZulu-Natal currently had six municipalities under administration. Of a total of 61 municipalities, only one had managed to receive a clean audit.
“The use of consultants must be seen for what it is – a desperate last bid effort to save them from further financial ruin. The DA expects the MEC to rein in municipalities – it is nothing short of criminal that millions are being paid to others for a job that should be done in-house,” he said.
