AG Office tells Tshwane Municipality how to get a clean audit

The Auditor General (AG)’s Office told the Tshwane Municipality to tighten its internal controls and consequence management if it wants a clean audit.

For the third consecutive year, the metro has received a qualified audit opinion with findings.

This means while the city’s financial statements are largely accurate, there are still a few material errors.

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On the financial front, the AG raised concerns over the Tshwane Municipality’s unauthorised, irregular, fruitless and wasteful expenditure, which has risen to over R5 billion.

On the service delivery front, the municipality is also leaking money.

The AG’s report said the city recorded 21% of electricity distribution losses and 39% in non-revenue water.

This is water and electricity that the municipality loses before it reaches the customer, primarily due to leaks and illegal connections.

Speaking before council on Thursday, senior auditor Xolani Zicwele said these are some of the reason’s the municipality’s audit opinion has remained stagnant.

“Overall, from a performance information point of view, we are noting that the number of indicators affected by either material misstatements or measurability issues are reducing; however, the extent of the remaining ones still remain concerning.”

Tshwane Mayor Nasiphi Moya said that the municipality is committed to resolving the issues raised by the AG.