By Doreen Mokgolo
The latest Auditor-General (AG) report for Ekurhuleni reveals serious financial woes at the time the DA held the majority in the council and controlled the city’s finances.
The metro previously received three consecutive clean audits.
The AG’s unqualified audit opinion report identifies unauthorised, irregular, and wasteful expenditures.
The report was revealed at a council meeting in Germiston on Tuesday and focused on the 2021-22 financial year when the DA majority controlled the city’s finances.
The report identified R516-million in irregular expenditure and R81-million in wasteful expenditure.
City manager Imogen Mashazi called the report a “mild regression” and said the wasteful expenditure was caused by contract management and supply chain issues.
“We have new staff members, and it’s our responsibility to train them properly to address contractual management weaknesses,” she said.
“We agree with the AG that stronger internal controls are necessary to achieve clean audits again. It’s important to note that the city’s financial health and service delivery performance remain positive.”
Mashazi also disputed Moody’s recent credit downgrade of Ekurhuleni to “junk” status.
“GCR [an affiliate of Moody’s Investor Service], not Moody’s, is the authorised credit rating agency for our metro,” she said.
The member of the mayoral committee for finance, Nkululeko Dunga, distanced himself from the findings, claiming he wasn’t in charge during the audited period.
“The problematic contracts were signed between 2021 and 2022 when the DA was in power. Our governance oversight began in March 2023,” he said.
Ekurhuleni council’s chief whip, Jongizizwe Dlabathi, voiced disappointment with the report.
“These findings expose weaknesses in the internal controls that delivered clean audits under ANC governance,” he said.
“The report confirms a decline in financial and supply chain management oversight since the change in leadership.”
Pictured above: Ekurhuleni mayor Sivuyile Ngodwana.
Image source: Supplied
