Salga reacts to damning municipal report
The South African Local Government Association (Salga) says the current state of municipal finances is not to be taken lightly.
In reaction to the municipal audit outcomes released by the auditor-general, the association says it is disappointed and deeply concerned about the running of municipalities.
Auditor-General Tsakani Maluleke on Wednesday released a damning report on local government.
The report indicates how municipalities' financial positions have regressed with many of them continuing to incur high irregular expenditures - despite battling with service delivery. The report, focused on the 2019/20 financial year, shows that municipalities in the Free State and North West have also not shown much improvements.
READ: AG: 4 KZN municipalities failed to provide evidence of expenditure
The auditor-geneneral indicated that municipalities in these provinces are plagued with poor financial controls, high irregular expenditure and lack of accountability.
Maluleke in her report showed how almost 50% of municipalities countrywide have outstanding creditors that are greater than available cash at year end.
She also indicated that over R1 billion was spend on the use of consultants whilst municipalities have appointed people who can perform the same functions.
"The magnitude and severity of the problem identified by the AG calls for decisive action and means that we as Salga must persistently insist on municipalities to implement consequences management and enforce accountability," Salga said in a statement.
