Election may affect next audit result

There is a possibility that the 2016-17 local government audit outcomes could be negatively affected by the 2016 local government elections.

Eugene Zungu, head of audits for the auditor-general, said on Thursday it was flagged based on a slight regression in the audit outcomes following the 2011 local government elections.

On Wednesday, AuditorGeneral Kimi Makwetu released a report on the audits of SA’s municipalities for 2015-16.

The report showed that the financial health of 65% of the country’s 263 municipalities was either “concerning” or “required intervention”.

The election could have a negative effect on the next report, Zungu said.

He was the keynote speaker at the Business Day Dialogues in Johannesburg during a panel discussion organised in conjunction with the South African Local Government Association (Salga) on Thursday.

Zungu said outcomes could be negatively affected if a new administration did not follow through on commitments made by its predecessors to improve audit outcomes and disowned the outcomes of the old administration. “We call on municipal leadership that accountability is given the highest priority from the start of the term of the new administration.”

Simphiwe Dzengwa, executive director for Salga, told Business Day that where there was evidence of senior municipal personnel delivering a good performance, they would recommend that the personnel should be retained.

Where there were vacancies, they should be filled as soon as possible with quality and capable managers.

Dzengwa said reforms to supply chain management and the municipal Standard Chart of Accounts, which take effect on July 1, would pose a challenge to municipalities.

Salga and the Treasury would monitor councils to make sure the instruments were available so that councillors could “hit the ground running” on July 1.

WHERE THERE WERE VACANCIES, THEY SHOULD BE FILLED AS SOON AS POSSIBLE WITH QUALITY AND CAPABLE MANAGERS