Cooperative Governance and Traditional Affairs (CoGTA) Minister, Velenkosini Hlabisa, has welcomed the report on the audit outcomes of municipalities for the 2022/23 financial year by the Auditor-General of South Africa (AGSA).
This as the Auditor-General (AG) Tsakani Maluleke briefed the Portfolio Committee on Cooperative Governance and Traditional Affairs on Tuesday.
She stated that the audit outcomes indicated little overall improvement as the number of clean audits decreased.
Maluleke also revealed the unauthorised expenditure of R24 billion, with only one metro achieving a clean audit.
READ | AG tables municipal audit outcomes
On a positive note, the number of disclaimed audits decreased, while the most significant improvements in the audits were observed in the Eastern Cape and KwaZulu-Natal.
“The Minister welcomes the audit improvements in some municipalities but expressed serious concern about those that have regressed as well as those who have not improved as per the audit outcomes report for the financial year ended 30 June 2023,” said CoGTA in a statement.
Hlabisa’s Office said the Minister continues to support the work done by the AGSA and initiatives aimed at consolidating the improvements recorded in some municipalities.
The department said it will also support municipalities to implement and maintain effective systems in governance, financial management, performance management, infrastructure, service delivery and compliance with local government legislation and related prescripts.
Bolstering local government
The department further added that it is committed to implementing several key initiatives.
These include the implementation of a multi-stakeholder approach and the said work is underway to establish a clear framework for multi-stakeholder collaboration to bolster local government.
Work is also underway to promote ethical leadership with the launch of the Code for Ethical Municipal Leadership expected later this year.
“This initiative will introduce a set of principles aimed at fostering ethical behaviour within municipalities.”
The department has also vowed to investigate regulating councillor conduct.
Meanwhile, professionalising the public service remains paramount to combat the appointment of unqualified individuals in key municipal positions.
Cabinet approved the Framework Towards the Professionalisation of the Public Service in November 2022.
“This framework mandates that senior managers across all three spheres be appointed on merit, ensuring qualified and competent officials lead our municipalities.”
In addition, the department is working around the clock to strengthen oversight.
“Lack of consequence management remains a challenge. The department is supporting Municipal Public Accounts Committees and other oversight structures by reviewing critical governance documents and enhancing their understanding of their responsibilities through targeted capacity-building initiatives.”
Coalition governments
Zooming in on coalition governance, the department said it will address governance challenges and instability in hung councils.
The department has developed the Local Government: Municipal Structures Amendment Bill also known as the Coalitions Bill, which has been published for public comment.
READ | CoGTA Minister welcomes introduction of Coalition Bill
The bill aims to provide a legislative framework for the formation and management of coalition governments.
Enhancing audit outcomes
The department said it will also focus on functional disciplinary Boards, offer tailored municipal support, improve revenue management and enhance audit outcomes.
“These audit outcomes are aligned to the department’s report on the state of local government, and it is for this reason that the department and National Treasury are leading the process of the development of the Municipal Support and Intervention Plans in collaboration with sector departments, SALGA [the South African Local Government Association], provinces, and municipalities.”
The department states that the report by the AGSA confirms that municipalities need effective coordination across all spheres of government in the areas of governance, financial health, institutional matters, and service delivery.
This coordination is essential to ensure that municipalities receive the necessary support to effectively and efficiently fulfil their constitutional mandate.
The department said it was implementing the support envisaged by Section 154 of the Constitution through the District Development Model (DDM) approach which at this stage has seen the establishment of three district hubs and the development of DDM One Plans for all district municipalities.
“Implementation of the model, especially in local municipalities, will address socio-economic challenges and promote and retain investment into local economies. Added to this, the Minister will approach Cabinet to seek approval to establish an Inter-Ministerial Committee to focus on the audit outcomes of municipalities,” said CoGTA.– SAnews.gov.za
