The Chris Hani District Municipality and its six local municipalities did not make the list of 20 municipalities with clean audits, out of the 257 in the country.
Speaking during the South African Local Government Association’s (Salga) two-day virtual national members’ assembly recently, president Cyril Ramaphosa said it was a great concern that only 20 municipalities in the country had a clean audit.
Salga provincial director of operations, Sonwabo Gqegqe, said the picture did not look good in Chris Hani because out of the seven municipalities only three obtained unqualified audit opinions.
“Two municipalities received qualified audit opinions and the other two received an adverse and a disclaimer audit opinion respectively,” he said.
He added that out of the 39 municipalities in the province, the only one with a clean audit was Senqu Local Municipality in the Joe Gqabi district.
According to him the 20 municipalities which obtained clean audits nationally in 2018/19 were no different from all the municipalities in the country.
“Most of them are rural with no revenue base, but they have oversight and internal control systems to manage their affairs. There is accountability, continuity, stability and good governance.”
The report issued by Salga in the province was as follows for CHDM and its local municipalities:
- Chris Hani District Municipality received a disclaimer in 2018/2019 and three qualified audits in the past three financial years. The status of the municipality has regressed.
- Enoch Mgijima Local Municipality received an adverse audit for 2018/2019, two disclaimers in the past two financial years and a qualified audit in 2015/2016. The status of the municipality has improved.
- Intsika Yethu Local Municipality received a qualified audit in 2018/2019 and three unqualified audits in the past three financial years. The status of the municipality has regressed.
- Emalahleni Municipality received four unqualified audits status unchanged.
- Engcobo status improved unqualified in 2018/2019, qualified in 2017/2018 and unqualified two years before.
- Inxuba Yethemba has had three unqualified audits for the past three financial years and a disclaimer in 2015/2016. The status of the municipality was unchanged.
- Sakhisizwe had a qualified audit in 2018/2019 and unqualified audits in the past three financial years. Status regressed.
Gqegqe said nepotism and corruption contribute to the problem.
He said to resolve the issue it was crucial that Salga had set up systems and procedures such as the implementation of local government integrity management framework, training in ethics integrity.
It was also important for developing an accountability and consequence management protocol to be implemented by the municipalities once approved by the NEC.