ATM CALLS FOR SUSPENSION OF MAYORS, MUNICIPAL MANAGERS AND CFO’S FOR R32BN IRREGULAR EXPENDITURE

ATM is appalled with the blatant mismanagement of funds by both ANC and DA led municipalities as reflected in the 2018/19 report of the Auditor General entitled” Not much to go around, yet not the right hands at the till to reflect the state of financial management in local government.”

The Auditor General has lamented that Billions of funds allocated to municipalities are managed in ways that are contrary to the prescripts and generally recognised accounting disciplines.

The Auditor General says in some cases those responsible for the transparent management of these resources do not do it while no proper oversight over these lapses is effected.

A staggering R32,06bn Irregular expenditure across all nine provinces, up from R24.38bn of the previous year (2017/18) means the municipalities are indeed in the wrong hands.

The fact that R1.26bn was the cost of consultants to assist in the financial statement preparations is the most objective indicator not only of incompetence of the officials in the various finance departments in municipalities but it’s also the clearest sign of lack of oversight by the responsible politicians and a premafacie evidence for corruption.

The Auditor General has also picked up material irregularities in just 6 completed audits where more R11m was paid for goods not received, another about R12m for assets not safeguarded resulting in theft/vandalism and more than R1m due to unfair procurement leading to overpricing.

It is very clear that the National Government is now resorting to National Disaster Management act to cover up for the lapses and corruption in the municipalities instead of bringing the culprits to book.

It is indeed disgraceful to learn that in terms of water infrastructure, 41% of municipalities had no policy on water maintenance, and another 41 % had no policy on sanitation maintenance.

ATM is calling on the Auditor General to exercise his powers in terms of Public Audit Amendment Act for all the material irregularities and compel accounting authorities to take appropriate remedial action for all the identified cases of irregularities.

In addition, the ATM is calling for the suspension of all the mayors, municipal managers and CFO’s where material irregularities have been identified.

Politicians must stop making long speeches trying to rationalise blatant theft instead of applying consequence management. 

People of South Africa are also being called upon to stop perpetuating self-inflicted pain by voting for the parties whose officials are only interested in lining up their pockets instead of dispensing service delivery that they were elected and paid to carry out. The so-called New Dawn continues to fail our people and is failing to keep up to the clean governance that it promised the people of South Africa. 

Issued by the African Transformation Movement

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