WHY THERE’S A MARKET FOR CONSULTANTS
60% of municipalities cannot account for the revenue they received. Their municipal managers and financial officers are unable to show how and when financial transfers from government took place. They are unable to provide proof of where the amounts listed in their financial statements came from. Only a quarter of the country’s municipalities received unqualified audits. Almost one-third of municipal funds are lost because of ‘fruitless & waste expenditure’. 10% of municipalities are unable to sub- mit any financial statements. Up to 80% of municipalities in North West, Northern Cape, Mpumalanga, Free State and Limpopo received disclaimers – financial statements could not be verified. Direct link between municipal performance and political instability, eg Eastern Cape. 40 of the 41 municipalities received audit disclaimers. Councils failed to keep receipts of their expenditure. Source: Findings of 2006/07 financial year for South Africa’s 283 municipalities (Auditor General).