KWAZULU-NATAL's 47municipalities have incurred R2-billion in irregular spending, cooperative governance MEC Nomusa Dube said yesterday.
"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.
Municipalities are R2bn in the red
KWAZULU-NATAL's 47municipalities have incurred R2-billion in irregular spending, cooperative governance MEC Nomusa Dube said yesterday.
"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.