Auditor-General Tsakani Maluleke said the Municipal Finance Management Act made a provision regarding municipalities whose annual financial statements were still outstanding.
Three Western Cape municipalities are among 14 errant municipalities across the country named and shamed by Auditor-General Tsakani Maluleke for causing a delay in the compilation of the 2023 consolidated audit report for local government.
Maluleke exposed the errant municipalities in the Western Cape, Northern Cape, Free State, Gauteng and North West in a letter sent to Acting Speaker of the National Assembly Lechesa Tsenoli in which she explained the reasons for the delay in the submission of the outstanding separate and consolidated financial statements as well as delays in the finalisation of an audit for local government.
In her letter dated April 11, the Auditor-General said the Municipal Finance Management Act made a provision regarding municipalities whose annual financial statements were still outstanding or where delays were being experienced in the finalisation of the audit reports.
Maluleke said she had notified former National Assembly Speaker Nosiviwe Mapisa-Nqakula in October 2023 of the failure by 17 municipalities to submit annual financial statements for auditing for the 2022-23 audit cycle in line with the Municipal Finance Management Act (MFMA).
“From the previously stated 17 municipalities, I would like to update Parliament in terms of Section 133(2)(b) of the MFMA of the continued failure by Ditsobotla to submit 2022-23 annual financial statements for auditing.
“As previously communicated, the 2021-22 annual financial statements of Ditsobotla Local Municipality were not submitted and remain outstanding to date. I confirm that the relevant provincial legislature and the applicable municipality have been notified of the annual financial statements that remain outstanding.”
Maluleke asked Tsenoli to refer the submission on outstanding annual financial statements to the portfolio committees responsible for municipal oversight for their attention, given the significance of the audit process for oversight and accountability.
She also said the MFMA stated that if she was unable to complete an audit within three months of receiving the financial statements from an accounting officer, she must promptly submit a report outlining the reasons for the delay to Parliament.
“I would therefore like to inform Parliament on the delays experienced in the finalisation of the audits of 14 municipalities, due to the late submission of annual financial statements, delays encountered during the audit process, or delays due to staff protests.”
Maluleke said 10 municipalities submitted annual financial statements for auditing purposes after the cut-off date.
The affected councils are Kannaland and Swellendam in the Western Cape, City of Tshwane in Gauteng, and Moqhaka and Mafube municipalities in the Free State.
Others are Mamusa in the North West, Kai !Garib, Phokwane, Ubuntu and Kareeberg municipalities in the Northern Cape.
Maluleke also said in at least four municipalities, annual financial statements were submitted by the August 2023 deadline.
“Delays in the audit process of these audits were caused primarily by technical disputes between management and the auditors. The audits were finalised by 31 March 2024,’ she said.
The affected councils are Cederberg in the Western Cape as well as Mohokare, Dihlabeng and Letsemeng municipalities in the Free State.
She said where annual financial statements were received late, the audits commenced in January 2024, except for the audit of City of Tshwane Metro which commenced upon receipt of the annual financial statements in November 2023.
“We have duly notified the provincial legislatures of the affected provinces and the relevant municipalities of the delayed audits, in accordance with sections 133(2)(a) and 126(4),” Maluleke wrote in her letter.
Cape Times