Despite the fact that the number of municipalities that have obtained clean audits in KwaZulu-Natal has slightly increased from three to seven, unauthorised expenditure remains a concern.
This is as the province’s 54 local and district municipalities combined have raked in an unauthorised expenditure of R3.79-billion in the 2023-2024 financial year. The previous unauthorised expenditure was R3.09-billion.
Fruitless and wasteful expenditure
On the other hand, fruitless and wasteful expenditure decreased to R272-million from R348-million in the previous period. The municipalities were also able to rein in their irregular expenditure. It has been slashed from R6.2-billion to R5.7-billion in the same period.
These figures were revealed by the Office of the AG (Auditor-General) on Tuesday. It briefed the portfolio committee on cooperative governance and traditional affairs (Cogta) in the legislature in Pietermaritzburg.
The AG’s office reported that the ANC-run Msunduzi municipality submitted its financial statement late. After it was audited, it disputed the findings; hence, its report is not yet ready for the committee.
Okhahlamba municipality
The office also raised concerns that municipalities like Okhahlamba have since regressed. It previously obtained a clean audit. Also regressing from their previous audit outcomes are Nongoma, Umdoni and Endumeni. The eThekwini municipality, the only metro in KwaZulu-Natal, was flagged for incurring irregular expenditure. Also for doing little to penalise the employees behind it.
Badly managed municipalities
The AG’s office also revealed that some municipalities in the province are badly managed. They are staying afloat through grants and equitable share funding from the provincial government and other departments. The flagged municipalities are Mpofana and eNdumeni local municipalities. As well as Uthukela, Umzinyathi and Ugu district municipalities.
In its risk analysis of the municipalities in the provinces, the AG’s office said some municipalities have poor payment practices. These result in their invoices incurring penalties and interest. It also cited poor debt collection and higher water and electricity distribution losses as risks.
