Rédaction Africa Links 24 with Rebecca Davis
Published on 2024-03-22 12:39:02
The finance department of the City of Ekurhuleni is currently led by an EFF councillor, Nkululeko Dunga. Recently, the city presented its 2022/23 Auditor-General report, and the EFF was swift to claim a victory for clean governance. However, upon closer inspection, it seems that the report may not be as clean as initially advertised.
Following the release of the Ekurhuleni audit outcomes, the EFF in Gauteng issued a statement applauding the results, stating that it indicated “clean and sound financial management and reporting practices.” The EFF’s Gauteng branch even retweeted a tweet claiming that Ekurhuleni had received “a clean audit” from the Auditor-General. Additionally, an editorial in the Sowetan reported that EFF MPs claimed credit for overseeing a city that received a clean audit.
It is important to note that the term “a clean audit” has a specific meaning according to the Auditor-General. It means that the financial statements are free from material misstatements, and there are no material findings regarding reporting on performance objectives or non-compliance with legislation. However, Ekurhuleni did not actually receive a clean audit under the EFF’s leadership. They received an unqualified audit opinion, which means that while the financial statements contained no material misstatements, there were still findings raised on reporting on predetermined objectives or non-compliance with legislation.
The Auditor-General identified significant irregular expenditure totaling R516 million and fruitless expenditure amounting to R81 million. While the outcome for Ekurhuleni may be better than that of most South African municipalities, it was a downgrade from the previous year’s audit results, where Ekurhuleni was named one of the only metros, aside from Cape Town, to receive a clean audit.
Therefore, the repeated use of the term “clean” by the EFF to describe the audit results is factually misleading, considering the specific definition of “clean” in this context and the actual findings of the Auditor-General.
Overall, while the outcome for Ekurhuleni may not be as clean as initially claimed, it is essential to acknowledge the progress made and the continued efforts required to ensure clean and effective financial management in the city. The findings of the Auditor-General serve as a reminder of the importance of transparency, accountability, and adherence to financial regulations in the public sector.
Read the original article on Daily Maverick
