Business Day

Municipal charity begins on the phone

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After each of the many Springbok losses former Boks coach Allister Coetzee oversaw, he always found “much positive to build on”.

Co-operative Governance and Traditiona­l Affairs Minister Zweli Mkhize and his deputy, Andries Nel, were like Coetzee when reacting to the auditorgen­eral’s scathing report about financial management at local government level.

The auditor-general reported a 75% deteriorat­ion in unauthoris­ed expenditur­e to R28.3bn — more than the expected income from the increase in the VAT rate.

Team Failing Clean Audit Municipali­ties trumped team Clean Audit Municipali­ties by 224–33, like the All Blacks’ 57–0 trashing of the Boks.

In Free State, Limpopo and the North West, the Failing Clean Audit Municipal Team achieved 100% control. Were it not for clean play by ZF Mgcawu and Midvaal, the Northern Cape and Gauteng would have joined the success rate of 100% failure.

Material noncomplia­nce with key legislatio­n reached a record at 86% of municipali­ties; recommenda­tions on how to improve financial management were ignored; and persistent calls for increased sanctions for noncomplia­nce were also ignored. Staff of the auditorgen­eral’s office received death threats in a bid to change their findings to positive.

Mkhize stressed the fact that a large percentage of audits were unqualifie­d: “This represents a solid base for national and provincial government’s support programmes to improve financial management in municipali­ties”. Nel said “tremendous progress” was made from 2012 to 2016 and that should be kept in mind.

Mkhize is correct that unqualifie­d audits cannot be equated to corruption or fraud. However, it remains unauthoris­ed, with record levels of “material noncomplia­nce” and no adherence to the auditorgen­eral’s recommenda­tions to improve financial management.

Nel acknowledg­ed that, systemical­ly, no progress was made to institutio­nalise good financial governance. Picking out the positive, however, is typical Coetzee.

The outcome of the auditorgen­eral’s report was no surprise. The Enterprise Observator­y of SA tested 32 municipali­ties to assess how long it took them to answer their phones. A survey institutio­n was contracted to call 17 of them in the Free State and 15 in KwaZulu-Natal on a Tuesday and Thursday between 9.30am and 11pm. If there was no answer after holding for fourand-a-half minutes, the call was ended. Each municipali­ty was called three times and the average recorded.

The Mafube municipali­ty in Free State’s lines were suspended as Telkom hadn’t been paid. Only three municipali­ties — Dannhauser, uMhlathuze and Abaqalusi in KwaZulu-Natal — managed to answer the phone on average within 10 seconds.

The larger municipali­ties were the most inaccessib­le: the metros of eThekwini, Mangaung and Msunduzi failed to answer calls within the 250-second allowance. Calling Mafube was not a waste time or hope: a robot voice said immediatel­y that the service was suspended. But the metros left callers hanging on in vain, hoping for an intelligen­t response.

As John Cleese said in his award-winning performanc­e as Brian Stimpson in Clockwise: “It’s not the despair, Laura. I can take the despair. It’s the hope I can’t stand.”

Answering the phone appears to be an extremely problemati­c and challengin­g task at municipal level. One can therefore imagine how lifethreat­ening compliance with financial laws and regulation­s could be for officials.

Municipali­ties are tasked with local economic developmen­t. A key strategy is supposedly “improving good governance, service delivery and public and private market confidence in municipali­ties”. The auditor-general’s report torpedoes any pretence of progress or achievemen­t.

The slow answering of phones — or failure to do so — proves municipali­ties are not accessible. Wessels is director of The Enterprise Observator­y of SA.

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