Auditor-General: 18 out of 278 municipalities received a clean audit

Auditor-General: 18 out of 278 municipalities received a clean audit

- More than 65% of municipalities had errors in their financial records for the 2017/18 financial year

- Less than 20 received a clean audit

- The Auditor-General of SA says the situation overall has actually worsened in the last year

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Out of 278 municipalities that were inspected for the 2017/18 financial year, only 18 received a clean audit.

The financial records reveal that 63 municipalities actually got worse since the previous audit, while only 22 improved.

This was the description provided by SA's Auditor-General Kimi Makwetu.

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Makwetu said that many municipalities' books were riddled with errors and irregularities, with only 19% being totally free of financial misstatements, according to The Citizen.

The report also found that a full 65% of municipalities had at least some kind of error among their financial records, Briefly.co.za has gathered. 

Additionally, the Auditor-General reported evidence of extensive maladministration across municipalities. In some cases, local governments openly defied the recommendations of auditors.

However, in some areas there were slight improvements. For example, irregular expenditure decreased by more than R4 billion from last year, although it remains high at an estimated R25.2 billion.

The report only covers the year leading up to June 2018, meaning that it does not show the impact on municipalities of the Public Audit Act, which was passed this year.

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Nevertheless, the audits paint a dismal picture of much local government administration. This comes after Cyril Ramaphosa vowed in his SONA to see to it that governments were cleaned up.

He said that municipalities which failed to produce clean audits would be investigated, with some officials potentially facing prosecution.

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Source: Briefly.co.za

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