IMATU REACTS ON THE AUDITOR GENERAL’S REPORT

IMATU has learned that only 7 out of 237 municipalities have received a clean audit for the 2009/10 financial year. This follows the report from the Auditor General which contains the Consolidated General Report on the Local Government Audit Outcomes.

“Although the report shows that fifteen municipalities had audit reports in the 2009/10 financial year that were worse than in the previous year we are heartened by improvements at municipalities”, says the General Secretary of IMATU Johan Koen.

“We are pleased to see improvements in the rural Municipalities of Ehlanzeni district municipality, the Steve Tshwete and Victor Khanye municipalities (all three in Mpumalanga), Frances Baard (Northern Cape) and the local municipality of Fetakgomo (Limpopo), that received clean audit reports. They should feel proud to be reflected amongst the larger well performing municipalities, City of Cape Town and Metsweding (Gauteng)”, Koen added. IMATU commends the total of 57 municipalities that had improved audits compared to the previous financial year. Municipalities in Gauteng and KwaZulu-Natal had shown the greatest improvement. “We call on the newly elected leaders in the15 municipalities that had audit reports that were worse than in the previous year to implement the turn around strategy of local government with immediate effect”, says Johan Koen.

IMATU calls on all Municipal Managers to take note of the findings of the Auditor General that revealed that only in the Free State had there been a decline in unauthorized expenditure.

“We also commend the Mpumalanga government departments and their employees who have promised to immediately settle all their outstanding municipal accounts to improve cash flow at the province’s 21 municipalities. That is what loyal ratepayers and community members expect. Municipalities can not deliver services if they do not collect the revenue owed to them. The culture of non-payment must be eradicated and Municipal Managers must ensure that measures are taken to successfully collect debt”, says Johan Koen.