MAFIKENG – Auditor-General (AG) Terence Nombembe today released his 2009-10 provincial general report on local government which shows that the audit results of the North West municipalities have regressed further.
Tabling the provincial general report to the North West legislature on the audit outcomes of the province’s municipalities in the 2009-10 financial year, Nombembe said of the province’s 24 municipalities, only 10 (Bojanala, Dr Kenneth Kaunda, City of Matlosana, Greater Taung, Lekwa-Teemane, Moses Kotane, Ramotshere Moiloa, Ratlou, Rustenburg and Tlokwe City Council) had submitted their financial statements for audit by the legislated submission date.
The main reason for non-submissions by most municipalities and the regressed outcomes was inadequate HR planning which gave rise to leadership vacancies or suspensions, resulting in capacity constraints in the key finance portfolios of municipalities. Consultants were being used by a few municipalities to assist with accounting-related services and the compilation of financial statements.
The North West province is one of two provinces where more than half of the municipalities did not submit their financial statements for audit within the legislated time frames. This has adverse implications for the timely exercise of oversight by those charged with governance and may defer the opportunity for accelerated movement towards achievement of clean administration.
In respect of the 10 municipal audits finalised, only two municipalities, Greater Taung and Tlokwe, improved their audit opinions from disclaimers of opinion to qualified opinions. Of the eight municipalities where audit outcomes remained unchanged, two audit opinions (Bojanala Platinum District and Ratlou) remained unqualified with findings on predetermined objectives and/or compliance with laws and regulations; three (Dr Kenneth Kaunda District, Ramotshere Moiloa and Rustenburg) remained qualified; and three (Matlosana, Lekwa-Teemane and Moses Kotane) remained disclaimed.
The audit opinions on the two municipal entities (Dr KKDM Economic Agency (Pty) Ltd and Rustenburg Water Services Trust) remained unchanged, namely unqualified with findings on predetermined objectives and/or compliance with laws and regulations.
Other findings which relate to non-compliance with laws and regulations are summarised as follows:
For all media inquiries please contact:
Africa Boso (Senior Manager: Media Relations)
Auditor-General of South Africa
Tel: +27 (0)12 422 9880
Cell: +27 (0)71 365 3024