TMDM Audit Action Plan not adequate

Issued by Bea Campbell-Cloete – DA Councillor Thabo Mofutsanyana District Municipality
15 Apr 2024 in Press Statements

Note to editors: Please find attached English and Afrikaans soundbites by Cllr Bea Campbell-Cloete and Sesotho by Cllr Eric Motloung.

During a meeting of the Municipal Public Accounts Committee (MPAC) of Thabo Mofutsanyana District Municipality, the Auditor General’s report was interrogated. According to this report, one of the areas that must be improved on is the Audit Action plan. Over the next meetings, the audit action plan was investigated, and the Municipal Management was issued with questions on the said report. The Municipal Manager and Chief Financial Officer were also called to answer questions.

Unfortunately, no clear answers were forthcoming and the MPAC has decided to compile a report requesting clear answers on over 70 findings by the Auditor General.

MPAC found that the Audit Action Plan was not achievable, impractical, and not measurable. It also concluded that the plan, including responses from management, did not allow MPAC to play an oversight role. Information on questions by the MPAC is often supplied late which impacts investigations, especially in relation to Unauthorised, Irregular, fruitless and wasteful expenditure.

Some of the concerns raised by the MPAC Committee include the use of suppliers identified as irregular that are still being used for procurement, non-compliance with Supply Chain Management regulations, lack of performance management systems for section 56 and 57 managers, lack of review of acting allowances, over and underpayment of councillors, Municipal Manager’s contract was incorrect in terms of duration, prior year issues have not been resolved, lack of cyber security, stolen or damaged assets still being listed as assets, and committees not meeting.

The most crucial finding was that auditors were unable to obtain sufficient appropriate audit evidence that the statement on the state of the municipality’s budget was submitted to the mayor at the end of each month as required by MFMA Section 71(1).

The MPAC Committee has referred the replies by the Municipal Manager back for clarity and clear answers before it compiles its report to the Council.

The Democratic Alliance remains committed to ensuring that proper oversight is done that answers are forthcoming on contravention of the ACTS that govern local municipalities and that consequence management is applied where necessary.