KwaDukuza cracks clean audit by Auditor General

KwaDukuza municipality has passed its annual audit with flying colours.

The Auditor General reported to a packed Executive Council meeting in Stanger last week that the municipality had presented its figures fairly.

As well as members from the Auditor General’s office, representatives from all political parties, municipal officials and a large group of municipal interns attended.

Mayor of KwaDukuza Cllr Ricardo Mthembu said, “The fact that we have established structures such as the audit committee, performance audit committee, and the standing committee on municipal accounts, proves beyond doubt our commitment to instill good governance.”

He said that in previous years it had become an expectation to achieve a clean audit before 2014 “and this report attests to their commitment”.

Acting municipal manager Mandla Manzini said that the municipality had achieved the planned priority of the municipal turn around strategy, arising from the unfavourable assessment of municipal performance in 2009.

In spite of the clean audit, the AG pointed out that some R17.3 million of grant monies had not been spent and that the municipality risked losing them. The largest single amount was R5 million for a Stanger CBD upgrade. The report also noted “irregular” expenditure of R4.8 million and “wasteful” expenditure of R3.7 million.

Commenting on the report, DA caucus leader Madun Singh said of greatest concern was that only R22 million of R390 million budgeted for capital improvements had actually been spent to date.

“This is unacceptable. Already the community has lost faith in local government and its pathetic record of service delivery. We must see accelerated service delivery before financial year end.”

Another area of concern was a debtors book of R137 million, of which R72 million was older than 120 days. Aggressive debt collection was called for, he said, or debt could increase still further.

Cllr Singh questioned the presence of ‘privileged’ debtors on the municipal books. One debtor owed R3.5 million over 60 days and still received electricity supply, despite not honouring payment agreements. “Credit policy must apply across the board and no double standards should be applied,” he said.

Ward councillor Ann McDonnell said she was disappointed at the lack of spending on capital projects when so much needs to be done in the area.

“Roads and storm water drains in particular need a lot of attention, and there are substantial funds left over after the financial year end.”

She said the huge cost of overtime was not being addressed properly in the report.

“Municipal employees are seeing overtime as a right, not a privilege.”

The African Democratic Christian Party’s Pastor Nel Sewraj congratulated the municipality that the report was unqualified, meaning its record keeping and paperwork was good.

“There are some items that are of concern, in particular the mention of reports not being up to standard, and the use and allocation of emergency expenditure.”

Dolphin Coast Resident and Rate Payers (DOCRRA) secretary Barbara Shingler said that some targets were achieved.

“For this the KDM must be thanked, but, is it enough? Docrra would submit that there is huge room for improvement in the coming years.”

Shingler said that the auditor general should clearly identify any irregularities in municipal finances and that Docrra would be requesting a copy of the adjusted interim audit.

“This will clearly identify where funds have been moved between line items,” she said.

“Docrra highlights the lack of performance in a number of areas showing a serious lack of commitment and service delivery. It is also obvious that there is insufficient internal management and control to ensure that targets are achieved,” she said.