Another good report for Kouga

Municipality gets third unqualified audit – but concerns raised

THE Kouga Municipality has been awarded an unqualified audit by auditor-general Kimi Makwetu for the third consecutive year. But the auditor-general (AG), in his report for the 2016-17 financial year, said the municipality had failed to hold officials accountable for non-performance.

Commenting on matters which had no adverse effect on the audit’s outcome, the AG said the municipality had also lost 38.5% of its water supply – losses worth R21-million.

He said the DA-run municipality had properly disclosed R35.3-million in fruitless and wasteful expenditure accumulated over the last seven years.

While the municipality had irregular expenditure of R98.9-million also accumulated over the past seven years, the irregular expenditure for the 2016-17 financial year was at R2.4-million.

Other findings included unauthorised expenditure to the tune of R81-million accumulated over five years.

DA councillor Brent Williams said the outcome was a result of proper structures being put in place and better financial management.

“Part of it is because we have a good financial officer in place,” Williams said. “There is room for improvement. “We are focusing on reducing our debtors and non-financial performance management that was raised as a finding.”

Williams said they would be addressing non-performance going forward.

DA Eastern Cape spokesman Mlindi Nhanha applauded the administration for the achievement.

“Under the leadership of mayor Elza van Lingen, the municipality ended off the financial year with R84-million in the bank, up from R78-million in the previous financial year,” Nhanha said.

“Income was raised through the sale of electricity and water as well as sanitation and waste removal.

“Staff costs also showed a decrease of R700 000.”

Nhanha said the report confirmed that the DA government was spending money on delivering services to the people and not on irregular, unauthorised, wasteful and fruitless expenditure.

The AG also found that the reported target on jobs created through private-public partnerships was not consistent with the planned target.

They ended the financial year with R84-million in the bank