Hard work, determination, and commitment are the drivers of success for the City of Ekurhuleni’s dream team which has managed to secure a clean audit for the 2021/2022 financial year, becoming Gauteng’s first metro to receive three consecutive clean audits.
A clean audit outcome occurs when the auditor-general finds no irregular, unauthorised, fruitless, or wasteful expenditure from the city. It also entails that there were no material findings reported on performance objectives and non-compliance with the legislation.
Speaking to Sunday World this week, the City of Ekurhuleni’s chief financial officer (CFO), Kagiso Lerutla, outlined some of the challenges facing the city, stating that getting a clean audit is not easy to achieve.
Lerutla said Ekurhuleni is facing political instability, which he said is a problem facing all local governments, “not just Ekurhuleni”.
“The issue of political instability affects all local governments because of unstable government structures. However, how the city manages the instability and the risks thereof distinguishes it from other metros,” said Lerutla.
“In Ekurhuleni, we are hellbent and adamant on achieving our Operation Clean Audits goal, we have a hard-working, determined, and committed team that makes sure we achieve the goal.
“Getting clean audits is not reliant on me as the CFO or the other leaders in power, but it requires collaboration from a stable administration and council which is determined to deliver on its mandate.”
Political instability has heightened in South Africa as the 2024 general election approaches, thereby increasing chances of procurement irregularities and poor audit outcomes.
In the past few months, Ekurhuleni was thrown in the gutter as political parties battled for power. The mayor, DA’s Tania Campbell, was ousted through a motion of no confidence in October 2022, after the ANC claimed that she had failed to provide adequate services to the residents of the metro.
She was reinstated in November following a collapse in coalition talks between the ANC and the EFF.
Campbell beat ANC’s Jongizizwe Dlabathi and scooped 124 out of 224 ballot votes. She indicated at the time that the DA’s job in the city is far from done.
EFF Nkululeko Dunga was expected to run for the mayorship, however, he withdrew from the race, citing that he was not interested in positions.
Dunga’s withdrawal was seen as an indication that talks between the ANC and the EFF were unsuccessful. The ANC had proposed to support the EFF in Ekurhuleni in exchange for the red berets’ support in their mission to remove former City of Johannesburg mayor Mpho Phalatse.
Lerutla shared that while there may have been political wrangling in the City of Ekurhuleni, he is proud to have achieved three consecutive clean audits since the year 2019/2020.
“This achievement is a testament to the commitment and professionalism of our finance team. We have worked tirelessly to ensure that our financial management practices are of the highest standard, and this clean-audit opinion is proof that our efforts have paid off.
“We are not resting on our laurels. We will continue to work tirelessly to ensure that our financial management practices remain of the highest standard. We are committed to transparency, accountability, and good governance, and we will continue to demonstrate this commitment in everything we do.” Lerutla said.
Lerutla joined the city in 2014 as divisional head for governance and compliance in the finance department, having previously worked in the office of the auditor-general.
He is a qualified chartered accountant recognised by the South African Institute of Chartered Accountants, with a BCompt degree from the University of Limpopo and a BCom Accounting Honours degree acquired from the University of Johannesburg.
His appointment as CFO in 2019 drew scorn and praise, but years later the faith the city has placed in him has paid off.
At the time of his appointment, Lerutla was 33 years old and considered young. He told Sunday World that it is important for him and his team in the finance department to succeed as a way of demystifying the stigma that young people cannot be trusted with high-level positions.
“I was appointed at the age of 33, and one of the issues is that as young people, we have been fighting to be given an opportunity, especially in strategic positions, for us to prove our capabilities.
“I said to my fellows at the time that with this position that I am given, I would not fail them, so that I do not become a bad example. I said I would go there, execute and do whatever is possible in my power so that I send a clear message that young people are capable of leading. We are capable of being in big positions.
“It was not necessary for me, but it was for all the young people to realise that if given an opportunity, you can yield positive results. They can see my results as an example.”
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