Thembisa Shologu
Gauteng municipalities have shown improvement in turning the tide on their weak governance, financial mismanagement, and other service delivery challenges.
Outlining the state of finances as tabled by Auditor-General Tsakane Maluleke for the 2023/24 financial year report, MEC for Treasury (GPT) Lebogang Maile said the overall audit outcomes improved. Eight out of the eleven municipalities received unqualified opinions, including two without findings.
Addressing the Media on Tuesday at the Gauteng Gambling Board, MEC Maile commended the Midvaal Local Municipality for sustaining its clean audit for 11 consecutive years.
“Most municipalities maintained the same outcomes as in the 2022/23 financial year, with 3 improving their outcomes. No city within the Gauteng Province saw a regression.
“Audit opinions for the City of Johannesburg, the City of Ekurhuleni, Rand West City Local Municipality, Sedibeng District Municipality, and Lesedi Local Municipality are unchanged and unqualified with findings.
“In the same period, the West Rand District Municipality, Merafong Local Municipality and Mogale City Local Municipality improved their audit outcomes from unqualified with findings to unqualified with no findings, a disclaimer to a qualified opinion, and qualified to unqualified with findings, respectively,” said Maile.
He raised concerns about the lack of implementation of the recommendations by some municipalities as instructed by the AGSA in the 2022/23 financial year audit outcomes
He cited the City of Tshwane and Emfuleni Local Municipality’s unchanged qualified outcomes from the 2022/23 financial year as a result of their inability to implement the recommendations or comply.
He emphasised the importance of implementing recommendations as they yield good results, with a case in point being the Mogale City Local Municipality
“In the context of Mogale City Local Municipality, the improvement is also attributed to the efforts made to implement the recommendations from the previous year on asset management as well as the involvement of the AGSA in its interim financial statements review.
“While this is concerning, the municipalities, GPT, Gauteng COGTA and South African Local Government Association (SALGA) are hard at work reviewing the particular challenges that the two municipalities are confronted with, focusing specifically on why the efficacy of the recommended interventions within the context of the said municipalities’ material circumstances,” said the MEC.
Maile noted that in the 2022/23 financial year, a call to action was made to accounting officers to ensure the preparation of regular Annual Financial Statements (AFS) at least twice a year.
Municipal leaderships were urged to address non-compliance, hold officials accountable for not implementing basic controls, and prioritise service delivery.
“Improvement in the quality of submitted financial statements was noted by the AGSA, indicating that auditees are heeding the call to instil financial discipline.
“Stronger fiscal controls will not only improve governance, but they will also allow for more resources to be directed towards critical areas of service delivery, ensuring that we build better and more resilient communities and an inclusive economy that grows in the hands of our communities,” said MEC Maile.
SALGA’s Provincial Chairperson, Jongizizwe Dlabathi said it was important that the government continued to expand awareness on how municipalities in Gauteng were doing regarding audits as fundamentals in accountability and transparency.
“We continue to reaffirm the AG’s work and are equally committed to committing all municipalities in Gauteng to cooperate with the work of the AG as one of the institutions that seeks to strengthen our democracy.
“As part of propelling excellence within our municipalities, we have introduced what we call the annual municipal audit awards in an attempt to recognise those municipalities who are demonstrating exceptional performance, one of which is Midvaal,” said Dlabathi.
SOURCED FROM THE GPG WEBSITE.
