Admin
10 Apr, 2025
Mixed Eastern Cape audit results show a government still failing the people
Statement by Bulelani Bobotyane, Provincial Secretary of the UDM in the Eastern Cape The United Democratic Movement (UDM) in the Eastern Cape notes the latest audit outcomes for the Eastern Cape government presented by the Auditor-General’s Office with serious concern. While the province has shown some progress in financial reporting, the core issues of poor planning, weak governance and lack of service delivery remain deeply troubling. According to the Auditor-General’s update to the National Council of Province's Select Committee on Finance, the number of clean audits in the Eastern Cape improved from five in 2019/20 to twelve in 2022/23. However, this has now dropped to nine clean audits in 2023/24, a clear sign of regression. It is unacceptable that key departments like Health and Education continue to receive qualified audits year after year. These departments are meant to deliver the most basic and important services to our people. The Education Department still battles to account for school assets, while the Health Department cannot properly report on money it may owe. How can we trust such departments to serve our communities? Even the Office of the Premier and the Eastern Cape Legislature have backslid in their audit outcomes. This shows poor leadership and weak accountability at the highest levels of provincial government. Many departments submitted performance reports full of errors and could not back up their so-called achievements with proper data. The UDM is also alarmed by the shocking levels of wasteful and irregular spending. In the 2023/24 financial year alone, the province recorded: • R467 million in unauthorised expenditure • R2.7 billion in irregular expenditure • R148 million in fruitless and wasteful spending. These figures represent a total disregard for public funds at a time when our people are suffering without proper healthcare, education, roads and jobs. The Transport Department’s scholar transport system which could help so many rural learners, remains under-utilised. Projects are delayed, money is paid for work not done and finished projects are often left unused. These are not just audit problems; they are service delivery failures. Our children can’t read because early childhood development targets are not met. Rural development remains just a slogan because departments fail to measure progress or complete evaluations. The UDM demands: • Full accountability for departments and individuals responsible for poor performance and misuse of funds • A clear plan to fix the failures in the Health and Education Departments. • Immediate action from the Premier to strengthen governance and service delivery across all departments. • Transparency in dealing with the R197 million in financial losses due to material irregularities. The Eastern Cape people deserve better than empty reports and broken promises. The UDM in the Eastern Cape will continue to be a strong voice for the communities being failed by this government.
Admin
23 Jun, 2017
AG’s findings on local government audit remains cause for concern
Regarding the Auditor-general’s latest report on the local government audit, the United Democratic Movement (UDM) notes that there were only marginal improvements in local government audit results. We are however concerned that 14 municipalities lost their clean audit status, while only 9 cleaned up their acts. It simply means that good governance at local level, and effective municipal management, is moving in the wrong direction. It is heartening that the Auditor-general’s office, as a Chapter 9 institution, seems to be doing its job without fear or favour and does not shy away from fulfilling its Constitutional mandate. Statement issued by Mr Bongani Msomi – UDM Secretary General The UDM is on record regarding Government’s over-reliance on consultants and it is discouraging to hear that consultancy fees for financial reporting services increased to R838 million. The greatest worrying factors are that: 1) Municipalities spend more than they have, their current liabilities exceed current assets at year-end, debtors are not paying or delay payment, as well as late payment of creditors. 2) There has been no improvement on the perennial concerns of the Auditor-general about contracts awarded to employees, councillors, their families and other state officials. 3) Even though fruitless and wasteful expenditure is down 21%, irregular expenditure has increased by just over 50%, which the Auditor-general said was “the highest since we started tracking the values”. Given the yearly damning observations, the UDM doubts if councils and municipal administrations take the Auditor-general seriously. The Auditor-general is simply ignored and the powers-that-be go about their merry ways without caring about the implications of their looting of State coffers and failing management. There are no repercussions for failing municipal administrations, and the UDM believes it might be necessary to have an Auditor-general with teeth. The UDM also notes an interesting trend regarding fruitless, wasteful and irregular expenditure by the Government; in particular at local sphere. This trend is mostly expressed during a year of general elections (national, provincial and local) as well as in a year of the conferences of the African National Congress (ANC) and its Alliance Partners. This trend is manifested in this year’s report, with the year preceding being Municipal Elections. We will not be surprised to notice a spike in expenses when, this time next year, another report is issued after the conferences of the ANC and its Alliance partners. The UDM will consider investigating this trend to establish whether public monies are not being used to fund internal political party programmes. If this is the case, it will be proof of yet another thievery. It is easy to look at the figures presented by the Auditor-general as list of amounts, but one must never forget that there are billions of Rands involved each year, which should be spent on bettering the lives of South Africans and not lining the pockets of the few.
