A few positives from the auditor general report - Salga

On Wednesday, Auditor-General Kimi Makwetu reported limited improvements in the audit results of South Africa’s municipalities for the 2015/2016 financial year.

READ: Auditor-General Kimi Makwetu explains it is not an investigating unit

Only 49 out of the country’s 263 municipalities obtained a clean audit.

Irregular expenditure is up by just over 50% amounting to almost R17 billion.

Xolani Gwala spoke to Simphiwe Dzengwa, executive Director of Municipal Finance at Salga, about some of the positive outcomes in the report.

When we started the previous term , there was only one municipality that attained a clean audit, at the end, in the last financial year for the previous term we had 49 municipalities.

Simphiwe Dzengwa, executive Director of Municipal Finance at Salga

Secondly more than 60% of municipalities currently are either attaining clean audits, or unqualified audits, that is another positive.

Simphiwe Dzengwa, executive Director of Municipal Finance at Salga

Almost more than 70% of the finding that goes to local government is spent in municipalities that have got clear systems, clean audits, unqualified audits and there is evidence of services being procured.

Simphiwe Dzengwa, executive Director of Municipal Finance at Salga

Dzengwa admits the amount of irregular expenditure is alarming and that consequence management systems should be put in place to address this.

He says however, only 10 municipalities have been implicated and explains how the money was spent.

This irregular expenditure by and large happened in ten municipalities and even in those ten municipalities the bulk of the amount was spent on procuring infrastructure services, but also we say where there are clear instances of non-compliance with the regulations, action must be taken, people must be held to account and if we have to go other state agencies beyond what the AG has done, we will do that.

Simphiwe Dzengwa, executive Director of Municipal Finance at Salga

Click on the link below to listen to the full audio....

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