AG concerned about municipalities not following recommendations

SABC News Kimi Makwetu 2 - AG concerned about municipalities not following recommendations

Auditor General Kimi Makwetu says there is a growing trend of municipalities that are not following recommendations from the audit office, but has indicated that they now have the power to issue binding recommendations.

He was speaking during a media briefing in Pretoria – on the local government audits of 257 municipalities for the 2017/18 financial year.

The Auditor-General’s last report indicated that R80 billion in irregular expenditure; was incurred over the past financial year.

Makwetu says they have seen deteriorating audit results in many respects.

“The recommendation that comes out of an audit that shows that there has been significant breakdowns in the system of internal control to the extent that financial losses continue; is no longer just going to be a loose arrangement.”

Makwetu adds: “It will become a recommendation for a period of time, agreed with the auditee. When that time expires, the law requires us to then treat that recommendation as a binding remedial action. If that is not auctioned, we will then have to trigger a process to determine whether we should not issue a certificate of debt.”

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