Audit outcomes: NMB improves, Buffalo City regresses – ANC reacts

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The ANC in the Eastern Cape has had a mixed reaction to this week’s release of audit outcomes for the province’s municipalities.

The party said it applauds the four best-performing local councils that have received clean audits for a third time in a row, including Mnquma Municipality, which obtained a clean audit for the second consecutive time.

However, ANC provincial spokesperson Gift Nqondi said the party also noted with deep disappointment, the qualified audit opinions for 13 Eastern Cape municipalities.

He said there were also three municipalities with audit disclaimers and one that received an audit opinion with adverse findings.

Nqondi said this showed that the Municipal Audit Support Program for municipalities required a much more rigorous and intensified approach, especially in struggling regions.

While Nelson Mandela Bay went  from a qualified to an unqualified opinion, it was the opposite for Buffalo City, which was slapped with qualified audit opinion.

According to the Auditor-General’s website, there are three types of audit opinions, namely:

1. Unqualified opinion - or clean opinion - financial statements present fairly in all material respects, the financial position and results of the entity.
    
2. Qualified opinion - the financial statements contain material misstatements or omissions. Readers should regard the statements with caution. The reason for the qualified opinion is provided.
    
3. Adverse opinion - the financial statements do not fairly present the financial position, results of operations, and changes in financial position, as per generally accepted accounting principles. The reason for the adverse opinion is provided.

'RIPPLE EFFECT'

Meanwhile, the Democratic Alliance in the Eastern Cape said while the province’s audit outcomes have improved slightly, a culture of unaccountability was undermining the improvements.

“In the report, Auditor-General Tsakani Maluleke highlighted the ongoing and severe financial mismanagement plaguing municipalities across the Eastern Cape.

“Most municipalities have failed to collect the money owed to them for the services they provided, and in 30 municipalities, more than 50% of the outstanding debt was not recoverable, said DA Shadow MEC for Cogta, Retief Odendaal in a statement on Wednesday.

“This not only exacerbates the already strained government finances but also threatens the sustainability of these municipalities.

“When municipalities falter, essential services like water supply, sanitation, and electricity become unreliable or unavailable.

“This creates a ripple effect, where local businesses struggle to operate, schools face closures, and healthcare facilities become compromised.,” Odendaal added.