Municipalities are R2bn in the red
KWAZULU-NATAL's 47municipalities have incurred R2-billion in irregular spending, cooperative governance MEC Nomusa Dube said yesterday.
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MEC Nomusa Dube
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"The amount of irregular expenditure is sitting at R2-billion. Surely this is a cold and concerning fact that our councillors must attend to," she said during the awarding of certificates to five municipalities that received clean audits in the 2010/2011 financial year.
Though the province had managed to do away with adverse and disclaimer audit reports, it was concerned about the emphasis of matters that arose as a result of irregular spending. Of KwaZulu-Natal's 61 municipalities, 47 received unqualified reports, while five received clean audits.
Among the culprits that featured prominently with irregular expenditure was KwaZulu-Natal's only metropolitan council, the eThekwini municipality, with irregular spending at more than R1-billion.
Yesterday's function was also attended by Auditor-General Terence Nombembe. Dube said she had seen major changes in how municipal finances were handled since her department started its clean audit campaign.
"Since the launch of Operation Clean Audit, we have recorded a year-on-year improvement in our municipal management area." The main factors that compromised municipal finances were poor controls, poor quality of statements and non-compliance with supply chain management.
Dube said the achievements of the Richmond, Umdoni, Umtshezi, Emandlangeni and Umzinyathi municipalities showed KwaZulu-Natal would soon achieve its clean audit target. Nombembe congratulated the municipalities, saying he would continue supporting municipalities so all of them could get clean audits.
MorenaWaPolelo
Atlist the proince is not bankrupt, but you must sortout your financial irregularity especialy at supply chain!!Report Abuse
Mbeva
Double standards??? ANC must put KZN under administration like Limpopo. Then we will see fairness. Otherwise there is a personal vendetta or conspiracy theory against Limpopo and its peopleReport Abuse
rasefatee
Nombembe congratulated the municipalities, saying he would continue supporting municipalities so all of them could get clean audits----------------------------------------------------------------------
It would have been better if Nombembe congratulated 90% of municipalities Kwazulu Natal with clean audit. corruption is committed by officials and not animals why not arresting them after the findings
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MorenaWaPolelo
@Mbeva the province is not in the Red it sufferes from poor financial reporting its a Supply Chain issue, internal capturing and reporting. Limpopo is broke with a depleted overdraft and they asked for more that is why the intervention.Report Abuse
doom555
Come on we all know whats the problem theft corruption dont be naive pleaseReport Abuse
ApelMankotsana
I agree with @Mbeva...the national government must also put the municipalities under adminstration..or else the notion that the ANC has political agenda will hold water...but whilst on still on municipalities,there are unconfirmed reports that Sekhukhune District Municipality paid an amount of R 45 000.00 to rent a fleet of cars and they are paying a monthly rental fee of R 1m...so you will realise why the municiplaities are always in debts.... i mean the municipality could have used the R 1 M rental fee to buy new cars which would belong to the municipality.....the report is unconfirmed though.Report Abuse
Xovizwe
@Mbeva@ApelMankotsana
Do you know why the department/Municipality is put under administration?
It is because it is unable to run it self. Umgungundlovu Municipality in KZN was put under administration because it can no longer,among other things, pay employees, render services etc. You don't put a government wing under administration if it still can sustain itself. In Limpopo, they were short of about 2 Billion and could not pay employees anymore, or render services. They needed urgent intervention.
You're suppose to sport the difference mosss!!!!
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Xovizwe
People from Limpopo, like Mbeva are amazing, I wonder where they got their education.They don't even know the simple thing, like why a government office would be put under administration.
IT NOT BECAUSE OF CORRUPTION, IT BECAUSE OF BEING BROKE!!!!!!!
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ApelMankotsana
The Greater Tubatse Local Municipality in Limpopo, Burgersfort is currently renting a building at R 1 million per month....in one year they would have paid R 12 million....the municipality can safe the R 12 million rental to buy its own building...just some of the examples why our municipalities in always in debt..and yet we have CFO there.Report Abuse
Xovizwe
If there are traces of corruption in any municipality or gov department, the investigation is instituted and head rolls, but if the municipality or department can no longer sustain it self then it put under administration. At some instances, municipalities are supposed to generate some of their own finances, i.e. rates, electricity, pay-meters, rentals, facilities like halls, sport grounds, tolls, traffic fines etc.So, Metro municipalities like JHB, DBN, PTA, CT can dictate their budgets and at some stage they can re-arrange their budget to suit their special needs. It is therefore possible that the auditor-general will find some irregular expenditures whereby the municipality used some of it budget to cater for special need, however, I agree that within those circumstances, corruption will feature.
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