2015/2016 Audit Report: Over R16 Billion Wasted By Municipalities – 5 Facts

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About a month ago, we reported that the Democratic Alliance (DA) party said the 2015/2016 audit report for SA municipalities has revealed disturbing financial damages done to municipalities by the ruling party – African National Congress (ANC).

Then, the DA wailed that the Municipal Audit report for the 2015/16 financial year revealed the following horrifying findings:

  1. That there was a total of almost R17 billion in irregular expenditure – an increase of R5 billion compared to the 2014/15 report;
  2. That the municipalities failed to notice almost 40% of their own irregular expenditure;
  3. The North West contributed 15% of the total irregular expenditure;
  4. Worst contributor responsible for the irregular expenditure in 2015/16 was ANC governed OR Tambo District at R1.56 billion;
  5. And, that more than half of all unauthorised, irregular, fruitless and wasteful expenditure reported was not investigated at all.

Read More Here – Municipal Audit Reveals ANC Municipalities Wasted Almost R17 Billion

Now, South Africa’s Auditor-General Kimi Makwetu, has announced that the 2015/2016 audit report for SA municipalities is depressing.

Here are 5 facts you should know about the audit report.

1. Irregular Municipal Expenditure Climbed by Over 50%

Despite the calls to avoid waste and the talks about SA being in an unstable financial situation, irregular expenditure climbed by over 50% to R16.81 billion.

Stressing that the 2015/2016 audit report for SA municipalities showed little improvements, the Auditor-General urged municipalities to focus on accountability and the filling of important positions like municipal manager and financial officers.

According to him, those are the factors that will enable improved audit performance.

2. Out of 263 Municipalities, Only 49 Received Clean Audits

The 2015/2016 audit report for SA municipalities revealed that only 49 out of 263 municipalities received clean audit.

Makwetu buttressed on this when he specified that there were marginal improvements in the audit results. Nonetheless, he upheld that local government has failed to maintain the steady improvements maintained from 2010 to 2015.

3. Only 14 Districts Municipalities Received Clean Audits



Again, the Auditor-General emphasized the need for accountability in the management of municipal affairs. He said it’s very uncool for only 14 districts to receive clean audits.

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4. City of Cape Town is the only Metro Municipality that Received a Clean Audit 

It was also revealed that the City of Cape Town is the only metropolitan municipality that received a clean audit in 2015/2016 financial year.

5. Western Cape is the Province with Highest Clean Audits

With 80% of the Western Cape municipalities receiving clean audits, the province emerged the administrative division with highest clean audits.

After the Western Cape comes KwaZulu-Natal. However, the margin is huge. Only 18% of KZN municipalities received clean audits.

The Eastern Cape province was spotted behind KZN as 16% of its municipalities received clean audits. In Gauteng, only the Midvaal Municipality earned a clean audit.

Auditor-General Makwetu praised the Western Cape province for increasing its clean audits percentage from 73% in the previous report to the current 80%.

Check Out – Minister David Mahlobo: R80 Billion Illicitly Flows Out of SA Every Year

He attributed the increase to the province’s focused interventions and support Western Cape municipalities got from the provincial leadership.

“…With the support from provincial leadership through the premier’s coordinating forum, operation clean audit and municipal governance review and outlook processes continued to bear fruit,” stated the Auditor-General .