WHY THERE’S A MAR­KET FOR CON­SUL­TANTS

Finweek English Edition - - Letters -

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).

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