Auditor General is dismayed about state of Municipal finances

Terence Nombembe, the Auditor General says the state of financial affairs is dire in South African municipalities and has criticised the government for the weakening of the pillars of governance.

Nombembe also expressed concern about the vulnerability of his office in the wake of what he said was a growing lack of support from the government to his warning about this deterioration according to an article in Business Day.

He said supply chain management, service delivery, security of government information and accuracy of government reports were deteriorating.

“Things are more serious because the people employed by the government to do work are the least prepared and equipped to do it. The situation is dire” said Nombembe.

“What we are saying is not taken seriously, not by the government, not by ourselves and those who need to do something about it.”

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He said his office would soon release the audits of local municipalities, and he was dismayed by them.

The Kouga earned a disclaimer on the 2011 Financial Statements, the worst possible audit finding. The Auditor General found many problems within the Kouga’s supply chain management that led to irregular expenditure amounting to millions of rands.

The allegations made by the Democratic Alliance on Monday regarding the non payment of pension money to the service providers after these funds were deducted from the workers will cause more concern about the state of finances of the Kouga Municipality.

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