Premier Mabuza gives municipalities a two-month ultimatum to implement audit action plans

30 July 2013

Mpumalanga Premier David Mabuza has given municipalities until the end of September to prioritise and implement all audit action plans as they were revealed by the Auditor-General Mr Terence Nombembe in March this year.

Premier Mabuza was speaking with the mayors, municipal managers, heads of departments and some members of the executive council today after a quarterly consultation with the Auditor-General in Nelspruit.

Mabuza said he had ran out of patience in “talking about one matter time and again” and municipalities which would have not implemented the audit action plans would face the music.

The Auditor-General had raised concerns amongst others were lack of provision of strategic leadership at a political level, human resources management, procurement and contract management, irregular spending, financial and performance management as matters which needed urgent adherence by municipalities.

“I have been hearing this song for many years that says ‘we will improve’ but nothing is happening. I do not know what else to say because I am also being told one and the same thing. I look foolish to the Auditor-General.

“It is high time that we do not keep this as a secret, if people cannot lead, we must tell them so and ask them to vacate their positions. It cannot be like this every day, something should happen if we are to achieve the clean audit in 2014,” said Mabuza.

The Premier has further expressed another concern as 13 of 21 municipalities have not yet appointed officials capable of producing annual financial statements, six others have also not yet appointed permanent chief financial officers, while others are gravely affected by shortage of staff especially in the municipalities’ finance sections.

Some municipalities have challenges ranging from information technology to mere safeguarding of documentation. Others fail to perform regular reconciliation of finances. Another challenge is the non-implementation of audit remedial action plans.

Most of the municipalities also over rely on consultants for the compilation of annual financial statements and according to the Premier; they should negotiate themselves out of those contracts by appointing officials capable to produce them within the next two months.

“I am a very much fragile person nowadays, if you cannot handle me very well, we will have a serious problem. It is highly impossible for any organisation to function without a chief financial officer.

“It is indeed a formula for disaster. Municipalities should negotiate themselves out of these contracts with consultants and should advertise and fill these critical posts. Generally the provincial departments are showing some signs of improvement, but with the municipalities the situation is extremely very bad,” said Mabuza.

He urged the municipalities to deal with unfunded mandates as they greatly contributed to the disclaimers and huge costs.

He explained that although the financial situation was improving with the provincial the administration, he was troubled by the departments of health, and agriculture rural development and land affairs.

Mabuza has since instructed all the municipalities to submit monthly reports directly to him in order to assess their performance and whether audit action plans were implemented.

Mr Nombembe did not meet with the mayors.

Issued by Zibonele Mncwango
Spokesperson: Mpumalanga Premier
Mpumalanga Provincial Government
Tel: (013) 766 – 2453
Mobile: 079 491 0163
E-mail: zmncwango@mpg.gov.za

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