City’s qualified audit to be discussed in council

‘Allegations of financial misconduct against senior managers were not always tabled’

THE findings of a leaked auditor-general (AG) report, apparently raising serious concern about the financial governance of the City, is expected to be discussed during a council meeting tomorrow.

Reports emerged at the weekend that the auditor-general had raised red flags about financial governance in the City of Cape Town.

The report was based on the unaudited, consolidated annual financial statements for the year ending on June 30 last year.

The financial statements were reportedly handed to the Auditor-General’s Office last September and show irregular expenditure of more than R47 million.

One of the key remarks made in the report is that there was “bias” relating to the bid specifications of a certain tender‚ which “did not allow all potential suppliers to offer their goods or services”.

It is understood that this has to do with a R300m electric bus tender awarded to Chinese bus company BYD.

The report also found that “allegations of financial misconduct against senior managers were not always tabled before council”.

Auditor-general spokesperson Africa Boso said the report was expected to be tabled in council tomorrow.

The Auditor-General’s Office is not mandated to comment on a report until it has been tabled, Boso said.

Approached for comment, City director of communication Priya Reddy said: “The City administration has taken note of the AG’s findings and views them in a very serious light.

“We have already taken steps to address the findings in the AG report and are working hard to address them from an administrative perspective.’’