Premier Mabuza strengthened by Auditor-General
21 February 2013
Mpumalanga Premier David Mabuza’s determination to take tough and unequivocal actions against municipal leaders whose institutions will receive disclaimers was today [Thursday, 21 February 2013] affirmed by the Auditor-General Terrance Nombembe during the second of a three-day provincial Cabinet Lekgotla.
Yesterday [Wednesday, 10 February 2013] Premier Mabuza said there would be consequences for the heads of departments and municipal managers whose institutions will receive the disclaimers from the audit reports.
Giving the local government audit outcomes for Mpumalanga province for the year which ended on 30 June 2012, the Auditor-General told the Lekgotla that there has generally been a serious decline in the audit outcomes of municipalities this financial year.
There has been a serious increase in municipalities with qualified report and disclaimers, with two even missing deadlines.
“It means some people did not do their work. It is really disturbing that some municipalities have regressed from clean audits to financially unqualified with findings.
“Chief financial officers are the custodians of financial management, and unless no one is accountable for financial mismanagement, South Africa is headed to a wrong direction,” said Mr Nombembe.
The Auditor-General also lashed out at those municipalities with the disclaimers saying they were tantamount to non-existence.
“I have come here to understand who is to blame for this monumental stroke that has hit all of us by a surprise. This clearly means that things are happening in those municipalities, there are financial transactions that are taking place but there are no records.
Mr Nombembe added that municipal leadership needed to be experts in financial issues of their municipalities by acting profoundly on financial irregularities. He said it was time for municipal leadership to take ownership and attend to matters of financial management.
He stressed that it was good leadership that would ensure that municipalities make it their business to employ properly trained people who understood and had experience on financial management. They should employ people who are professionally equipped to do administration in local government.
He explained that in spite of any remedial actions by the Honourable Premier appropriate consequences were necessary.
According to Nombembe, it was only Ehlanzeni District Municipality and Steve Tshwete Local Municipality which had clean audits. Gert Sibande District Municipaity and Victor Khanye Local Government Municipality regressed from clean audit to financially unqualified with findings.
Meanwhile Premier Mabuza reiterated that he was at the cross roads with the municipal managers and the chief financial officers adding that he had come to a point that he needed to take tough action.
“It cannot happen that municipalities will underperform and nothing happens, we have come to a point that certain people should be held accountable. We cannot talk forever; my understanding is that, where there is a will, we will always find a way.
“We cannot come here and talk about the same things years in and year out. Some municipalities are repeating these things for the third time. We cannot be friends here, if it means we must die in order for new people to be born, let it be.
“If people do not achieve, why must we honour their employment contracts? I do not think we are doing something good for the electorate. I do not feel good, I feel our people have a raw deal,” said Mabuza.
He assured the Auditor-General that indeed there would be consequences for disclaimers.
Issued by Zibonele Mncwango
Spokesperson: Mpumalanga Premier
Tel: (013) 766 – 2453
Mobile: 079 491 0163
E-mail: zmncwango@mpg.gov.za
