SANDILE MOTHA
ETHEKWINI Metropolitan Municipality in KwaZulu-Natal continues to bleed money, recording an irregular expenditure of R2.34 billion for the municipal audit outcomes in the period 2018/19 financial period.
This is contained in the Auditor General Kimi Makwetu’s report measuring financial performance of different municipalities across the country delivered on Wednesday.
In overall, the province recorded R6.5 billion in irregular expenditure for the period under review.
Makwetu also noted in his report that ongoing sourcing of consultants despite staff employed to perform the same duties were milking municipalities dry.
“Consultants continued to be utilised in many instances to assist with preparation of financial statements and financial reporting, with the province spending a total of R95 million in this regard. This while officials were in place to execute these functions,” said Makwetu.
Makwetu painted a bleak picture, saying there was little change effected by municipalities to enforce financial and performance processes.
He noted that most district municipalities lacked responsiveness to implement and monitor action plans.
“Most district municipalities had weak governance structure that did not enable effective accountability. Leadership did not always influence robust systems of internal control to drive good governance and discipline. More focus be placed on exercising political oversight and addressing the aspirations of citizens,” he said.
In 2018, former MEC for Cooperative Governance and Traditional Affairs Nomusa Dube-Ncube announced that his department had resolved to compel municipal managers employed in poorly performing municipalities to pay back performance bonuses received. Two years later, little progress has materialised to recoup the money.
In the same year, officials from the Auditor-General office dispatched to eThekwini municipality to investigate municipal financial affairs had to abandon work after receiving death threats.
eThekwini is the only Metro in the province and the biggest municipality controlling more than R52 billion budget.
Miyelani Holeni, local government expert and group chief advisor at management firm Ntiyiso attributed the poor municipal audit outcomes to the exodus of skilled professionals deserting municipalities for greener pastures.
These skills, Holeni said, are mainly financial skills, technical and engineering.
“There are three key themes that we are seeing emerging continuously within the audit outcomes. The first one has to do with skills within local government, the second one is about governance and lastly about the technical management of Municipalities. You’ll find that skills such as technical, financial and engineering are leaving the local government sector, this in turn leaves a disturbing trend. Some go to provincial government, some to the state owned enterprises and the private sector,” said Holeni.
He also pointed out that the lack of continuity and the failure to separate papers between the administrative and political arm contributed to misgovernance and financial mismanagement crippling the municipalities.
In terms of the provincial outlook, Ukhahlamba under uThukela district was the only municipality in the province with a good story to tell receiving a clean audit for two consecutive financial periods.
Eighteen municipalities received qualified audit opinions, an increase of five from the previous financial year.
Both Mpofana and UMzinyathi district municipality received a disclaimer.
In total, KwaZulu-Natal has 54 municipalities.
Mbali Ntuli, the DA’s provincial spokesperson on Cogta said cadre deployment was at the heart of poor performance by municipalities.
“The DA is disappointed by these findings. The reality is that KZN’s municipal audit outcomes will continue to be dismal for as long as the ANC shows lack of political will to lead and while it continues with cadre deployment. We need the right people for the job,” said Ntuli.
(Compiled by Inside Metros staff)