Connect with us

411

Tshwane Metro Probes Leaked Audit Report Amid Escalating Financial Mismanagement

Published

on

The City of Tshwane is investigating the source of a leaked auditor-general’s (AG) report for the 2023/24 financial year. The report, published by Moneyweb, revealed a continuation of the metro’s qualified audit opinion, highlighting escalating financial mismanagement and irregular expenditure.

The leaked report disclosed that Tshwane incurred R2.3 billion in irregular expenditure during 2023/24, up from R1.9 billion the previous year. Unauthorised expenditure surged dramatically from R423 million to R2.1 billion, while fruitless and wasteful expenditure remained constant at R347 million.

In response to the publication, the municipality issued a Sens statement, questioning the accuracy and origin of the leaked information, and confirming that the official audit report would be tabled before the Tshwane Council on January 30, 2025, in line with the Municipal Finance Management Act.

A History of Financial Turmoil

Tshwane’s financial challenges are not new. In the 2021/22 financial year, the metro received an adverse audit opinion due to widespread irregularities. While 2022/23 saw a slight improvement with a qualified opinion, irregular expenditure ballooned to a staggering R10 billion, raising serious concerns about fiscal discipline.

The current audit report underscores ongoing issues, particularly in the valuation of municipal assets like properties, plants, and equipment. Former mayor Cilliers Brink described this hurdle as a critical factor preventing Tshwane from achieving an unqualified audit opinion.

Political Instability Fuels Financial Mismanagement

The challenges facing Tshwane are compounded by the political instability that has plagued Gauteng metros since the 2021 local government elections. Coalition governments have struggled to maintain stability, resulting in frequent changes in leadership and administrative staff.

Brink, who served as mayor from March 2023 to September 2024 before being ousted through an ANC-sponsored motion of no confidence, blamed the metro’s fiscal woes on a culture of “no consequences for bad conduct.” During his tenure, he sought to address corruption and irregular tender processes, including questionable contracts like the Rooiwaal wastewater treatment plant refurbishment.

His successor, Dr. Nasiphi Moya of ActionSA, has inherited these challenges amidst a backdrop of continued financial mismanagement and political turbulence.

What the AG Report Reveals

Deputy mayor and finance MMC Eugene Modise confirmed the preliminary findings of the AG report, noting that the 2023/24 audit opinion is unlikely to improve. “We are going to get the full report this week… but it’s not looking good,” Modise said.

The report highlights systemic fiscal mismanagement across the sector, including:

  • Escalating irregular expenditure.
  • Persistent unauthorised and fruitless spending.
  • Failures in asset valuation and financial oversight.

These issues have had a direct impact on the delivery of basic services, including water, electricity, clinics, and waste collection, further straining public confidence in the metro.

Path Forward for Tshwane

The ongoing fiscal and administrative crises have left Tshwane at a crossroads. While the municipality claims to have an audit action plan, the AG has noted that it has not been effective in resolving key issues.

With the 2023/24 audit opinion mirroring the previous year’s outcomes, questions remain about whether the coalition government can enact meaningful reforms to stabilize the metro’s finances and restore service delivery.

As the City of Tshwane prepares to table the official audit report in January, the spotlight remains on its ability to address the systemic issues crippling its governance and finances.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com

Continue Reading