Consultants bungling municipal audits despite receiving over R1 billion: COGTA committee chair

JOHANNESBURG - Cooperative Governance and Traditional Affairs committee chairperson, Dr Zweli Mkhize, says consultants are bungling municipal audits despite being paid over R1 billion to ensure the books balance.

Mkhize has also noted what he calls a deepening crisis in the local government sector, saying there’s a lack of accountability and leadership.

He made the remarks while addressing a governance cluster briefing in Parliament on Monday..

Mkhize says the latest audit outcomes show how the financial and governance crisis in the country’s municipalities is deepening.

He says this has profound consequences for service delivery and public trust.

Mkhize says the audits also show that 59% of financial statements submitted for auditing contained material misstatements despite being prepared by private sector consultants.

“This, despite municipalities having spent over R1.4 billion on consultants to prepare these very statements. It is unacceptable that such exorbitant spending yields so little value.”

Mkhize says what is even more “troubling” is that many of these municipalities across the country already have permanent staff tasked with performing this work and have called for the wastage to end.