South African Municipalities Struggle With Financial Management

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South African Municipalities Struggle With Financial Management
Financial ManagementMunicipalitiesAuditor General
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The auditor general's report for 2022-23 reveals a concerning trend of financial mismanagement in South African municipalities. The report highlights widespread non-compliance, poor financial controls, and material irregularities resulting in estimated losses of over R5 billion.

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This pattern of stagnation and regression is not only alarming but also indicative of a system in desperate need of reform. The question we must ask is not only why these problems persist, but what must be done to break the cycle of mismanagement and set our municipalities on a path toward accountability and transparency.

A clean audit opinion also means the municipality complied with the important legislation that applies to it and, where transgressions did occur, they were rare or not material. l Adequate systems to ensure the timely preparation of annual financial statements that are free from material misstatements;

These issues have contributed to a steady decline in living standards and widespread service delivery failures, often sparking service delivery protests.

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