The City of Tshwane has been flagged for serious irregularities and failing to submit the correct financial statements to the auditor-general for the July 2021 to June 2022 financial year.
“The recorded reasons to dispense with the official procurement processes were not in accordance with municipal supply chain management regulations.”
Tshwane was also found to incorrectly account for accrued leave pay due to incorrect calculations of employee leave balances and daily rates, which was overstated by R858m. Similarly, salaries and wages were found to be controlled on an inadequate system. The AG could not get the necessary audit evidence for salaries. “Consequently, I was unable to determine by alternative means whether any further adjustments were necessary to salaries and wages stated at R7.4bn.
The report is expected to be presented at the first council meeting of the year on January 26. This includes a report into the conduct of former Tshwane CFO Umar Banda, whose contract ended on December 31. This is in relation to the compilation of the financial statements and auditing processes. Williams said the adverse opinion is a “great disappointment. But the City of Tshwane executive and management welcome the work of the auditor-general to bring this to the fore. We will continue to respect the independence of the auditor-general and work with them to bring change to the city.”
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