Pre­vi­ous city bosses fin­gered fol­low­ing AG’s re­port

The Star Early Edition - - NEWS -

THE au­di­tor-gen­eral (AG) last week tabled his con­sol­i­dated gen­eral re­port on the 2015-16 mu­nic­i­pal au­dit out­comes.

City of Joburg mayor Her­man Mashaba said the re­port con­firms years of ram­pant mal­ad­min­is­tra­tion wit­nessed un­der the pre­vi­ous ANC-led govern­ment.

“Un­der the pre­vi­ous ad­min­is­tra­tion’s lead­er­ship, the AG found that the city’s fi­nan­cial per­for­mance had re­mained stag­nant, scor­ing an un­qual­i­fied opin­ion with find­ings due to a num­ber of con­trol de­fi­cien­cies re­lat­ing to record man­age­ment and pro­cess­ing, re­port­ing and rec­on­cil­i­a­tion of trans­ac­tions.”

Added to this, said the mayor, so-called cor­rec­tive mea­sures taken by the pre­vi­ous ad­min­is­tra­tion failed to ad­dress the root causes of pre­vi­ous de­fi­cien­cies high­lighted by the AG, re­sult­ing in re­peat find­ings on, among others, ma­te­rial mis­state­ments in the fi­nan­cial state­ments; non-com­pli­ance with leg­is­la­tion, in­clud­ing sup­ply chain man­age­ment pre­scripts; and in­ad­e­quate per­for­mance re­port­ing.

“Sadly, two of the city’s en­ti­ties, Pik­itup and the Jo­han­nes­burg Roads Agency, could not sus­tain the clean au­dits achieved in the 2014-15 year and re­gressed to an un­qual­i­fied opin­ion with find­ings in the 2015-16 year of review. The au­dit out­comes il­lus­trate poor at­ten­tion to fi­nan­cial man­age­ment prac­tices un­der the pre­vi­ous govern­ment. This was also man­i­fest in the fail­ure to ad­e­quately in­ves­ti­gate cases of unau­tho­rised, ir­reg­u­lar and fruit­less and waste­ful ex­pen­di­ture over the years,” he said.

This left the council un­able to as­sess whether the iden­ti­fied ex­pen­di­ture could ef­fec­tively be re­cov­ered.

“These find­ings af­firm this ad­min­is­tra­tion’s com­mit­ment to build­ing a com­pe­tent, trust­wor­thy and pro­fes­sional civil ser­vice that puts the in­ter­ests of the city’s res­i­dents first.

‘The city is now see­ing a steady im­prove­ment’

“Since tak­ing of­fice, we have worked hard to be­gin the process of im­prov­ing the city’s per­for­mance on fi­nan­cial man­age­ment and re­port­ing.”

To date the city has:

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