Development agency earns clean audit

WHILE none of the municipalities in the Eastern Cape received clean audits for the financial year that ended in March last year, the Nelson Mandela Bay Municipality’s entity, the MBDA, managed one.

The Mandela Bay Development Agency, which has been operational for 10 years, also achieved nine consecutive unqualified audits before being the only auditee from all municipalities and their entities to achieve a clean audit during the 2012/13 financial year.

A clean audit means no transgressions were found by the auditor-general during the auditing process.

While the MBDA received a clean audit, the Bay municipality was given a qualified audit opinion because of a lack of proper financial controls and a staggering R471.6-million incurred in unauthorised, wasteful or fruitless expenditure.

On Wednesday, Auditor-General Kimi Makwetu congratulated the MBDA on its good governance and clean administration.

MBDA chief executive Pierre Voges said having clean administration was advantageous in securing funding.

“The issues raised by the AG have a serious negative impact for the province when it comes to investment promotion, donor funding and attracting the right skills to lift the economy.

“Fortunately, the MBDA has been fairly successful in recruiting external funding from local and international partners, investing in local urban regeneration.

“If not impossible, it would certainly be difficult to succeed without the strength, credibility and assurance provided by a clean, unqualified audit finding,” Voges said.

“The MBDA stands ready to assist and share best practices and experience with interested entities in the Eastern Cape.”

Makwetu also said municipalities were wasting too much money on consultants while they had staff in their employ.