30 January 2019
Auditor-General of South Africa Reports on Ethekwini’s Municipal Finance Management Act 2017/2018
EThekwini Municipality held its first Full Council meeting for 2019 at the Durban City Hall this morning. The highlight of the meeting was a report back from the Auditor-General of South Africa (AGSA) on the City’s Municipal Finance Management Act (MFMA). Charmaine Maharaj from the AGSA praised the City’s entities namely the uShaka Marine World Theme Park and the Inkosi Albert Luthuli International Convention Centre for clean audits.
EThekwini Mayor Zandile Gumede said she was pleased with the AGSAs report, adding that the City is determined to implement effective consequence management to improve its audit outcomes.
Maharaj said the AGSA exists to strengthen the country’s democracy by enabling accountability and governance in the public sector through auditing, thereby building public confidence.
She called for more effective leadership, oversight responsibility and the need for stricter compliance monitoring.
With respect to areas of non-compliance, Maharaj said irregular expenditure is a concerning factor. “Reasonable steps were not taken to prevent irregular expenditure of R732 million as required by section 62 (1) (d) of the MFMA. The majority of the irregular expenditure was as a result of non-compliance with Supply Chain Management regulations to the procurement of goods and services,” she said.
Issued by eThekwini Municipality’s Acting Head of Communications Mandla Nsele.
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