Audit shock for municipality - Letaba Herald
Audit shock for municipality - Letaba Herald
Audit shock for municipality - Letaba Herald
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PAGE 2 HOEDSPRUIT HERALD - Friday 15 February 2013 NEWS<br />
Local municipalities fail audit<br />
THE Mopani District Municipality and its five<br />
local municipalities received poor audit results<br />
from the Office of the <strong>Audit</strong>or General <strong>for</strong> the<br />
2011/2012 financial year which ended last<br />
June.<br />
Mopani, Tzaneen, Giyani and Ba-Phalaborwa<br />
received disclaimers which means the<br />
auditor-general's office was unable to express<br />
an audit opinion because of a lack of sufficient<br />
or appropriate audit evidence due to the<br />
municipalities poorly prepared annual financial<br />
statements.<br />
The Greater <strong>Letaba</strong> Municipality improved<br />
from adverse outcome in the 2010/2011 financial<br />
year to qualified audit opinion in<br />
2011/2012 whilst the Maruleng Municipality<br />
went down from unqualified audit opinion<br />
with findings to qualified outcome.<br />
The latest audit outcomes reflect a very poor<br />
and undesirable state of financial affairs des-<br />
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<br />
pite the municipalities paying five external<br />
consultants hourly rates of between R1700 and<br />
R2 200 per person <strong>for</strong> attending quarterly and<br />
special meetings aimed at assisting municipalities<br />
improve their financial affairs in line<br />
with the strategic objectives of Operation<br />
clean <strong>Audit</strong> 2014.<br />
The consultants who <strong>for</strong>m a five member<br />
District <strong>Audit</strong> Committee, consisting of Accountants,<br />
IT Specialist and a Lawyer also<br />
receive R1000 preparatory allowance, each<br />
determined by the meetings attended.<br />
The office of the <strong>Audit</strong>or-General attributed<br />
the poor audit outcomes to lack of strong<br />
internal controls, key officials lacking minimum<br />
competencies and skills, lack of consequences<br />
<strong>for</strong> poor per<strong>for</strong>mance and transgressions<br />
and lack of political will to address<br />
outcomes.<br />
'The figures <strong>for</strong> unauthorised, irregular, fruit-<br />
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less and wasteful expenditure also appear to be<br />
getting worse,' said Satish Pillai, a senior<br />
manager in the Office of the <strong>Audit</strong>or General in<br />
the province.<br />
Pillai said the status of audit outcomes stems<br />
from failure by the leadership of the municipalities<br />
to implement the audit recommendations<br />
from the previous year.<br />
Members of the opposition parties in Mopani<br />
municipalities say violation and disregarding<br />
of supply chain policy when taking decisions<br />
relating to the awarding of tenders, contributed<br />
immensely to the poor audit outcomes.<br />
'Unless stricter controls measures are implemented<br />
the system in the municipalities will<br />
remain open <strong>for</strong> abuse and fraudulent activities<br />
resulting in more poor audit outcomes,' said a<br />
senior municipal official who did not wish to<br />
be named.<br />
Mopani District Municipality manager, Tim<br />
Maake could not be reached <strong>for</strong> comment, as<br />
his mobile phone rang unanswered.<br />
BAD NEWS: Satish Pillai and Essa Muhamed<br />
of the office of the <strong>Audit</strong>or General in the<br />
province during the municipal finance week<br />
in Tzaneen on Thursday.