Municipal leaders are over the moon about Ethekwini Municipality’s first clean audit in 16 years.
|||Durban - Ethekwini Municipality leaders were over the moon on Wednesday at the announcement that the city had received its first clean audit in 16 years.
Councillors and city manager S’bu Sithole lauded the financial clean bill of health, announced recently by Auditor-General Kimi Makwetu, as a “historic achievement”.
According to the auditor-general’s website, there are three aspects of an audit finding – qualified, unqualified and clean audits.
A clean audit outcome means “financial statements are free from material misstatements (in other words, a financially unqualified audit opinion) and there are no material findings on reporting on performance objectives or non-compliance with legislation”. A clean audit is the best outcome that can be obtained.
Deputy mayor Nomvuzo Shabalala broke the news to her colleagues during the final executive committee meeting of the year.
The leaders stopped short of popping champagne corks but expressed their delight as opposition “loudmouths” were silenced.
The opposition was split on the news, with the IFP welcoming the findings while the DA said it would hold off on celebrations for now, questioning the credibility of the audit.
The municipality has since its inception received unqualified audits.
“Finally, we have a clean audit,” said Shabalala to loud applause from her party colleagues and city officials.
“Our clean audit is not a clean audit just because we are saving money, it is because of the services we are providing to the community. Some of the municipalities that brag about clean audits, you find that they are not even spending the money. Of course (we can boast), we have the accolades on the quality of life. With that, congratulations team. A lot of loudmouths will now be shut,” she said to more loud cheers.
Sithole said the outcome was down to a lot of “hard work and commitment” by political heads and officials.
Addressing members of the media after the meeting, he said: “This is obviously a historic achievement for the city. For the first time since eThekwini was established in 2000, we now have a clean audit. I believe that this is due to a number of factors: one, commitment at a senior level of the municipality, through the mayor, the executive committee, our council, the municipal public accounts committee, the audit committee.”
Sithole allowed himself a generous pat on the back, saying it was also “through my efforts as an accounting officer together with a team of officials”.
“In particular the strengthening of our internal audit processes and dealing with a whole range of SCM (supply chain management) related matters.”
Sithole said matters such as the Manase Report had forced the municipality to direct all efforts at “addressing some of the major shortcomings and revamping systems”.
A clean audit meant the city had complied with the laws of the country and had submitted financial records that were “untainted”, Sithole said.
“We have to thank the staff, the community, and, of course, the media for keeping us on our toes regarding the need for us to be accountable for how we use funds, how we procure goods and services in terms of how we balance between having to comply and deliver services on time.”
He said the city’s “main task” now would be to “sustain what we have started”.
Irregular spending should be brought down to zero.
“Only two employees were found to be doing business with the city, amounting to R46 000. That is a dramatic decrease from the past, when employees were doing business with the city to the value of R36 million.”
He said obtaining a clean audit did not mean that the municipality was now all of a sudden without challenges.
“We still need to improve the way we communicate with our stakeholders, our communities. We still need to minimise as much as possible public protests – especially those of a violent nature.”
The municipality’s chief financial officer, Krish Kumar, said the city last year had three items that required attention – irregular expenditure, water loss and distribution – and there were adjustments to the budget put through without determining benefits.
IFP councillor Mdu Nkosi welcomed the audit outcome, saying it was down to the opposition constantly questioning the ANC-led municipality on how it was “representing ratepayers”.
DA provincial and eThekwini caucus leader Zwakele Mncwango said Makwetu’s findings were flawed if the “city’s internal audit committee’s quarterly reports, scathing of the city, were anything to go by”. The city’s quarterly report, released last month, criticised the municipality’s financial management and supply chain management regulations.
The Mercury
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