Municipal Manager Ntombi Baart said political protection was hindering effective administration, as she outlined a vigorous turnaround strategy for Makana Municipality, following the institution's recent roasting by the Auditor-General (AG).
Municipal Manager Ntombi Baart said political protection was hindering effective administration, as she outlined a vigorous turnaround strategy for Makana Municipality, following the institution's recent roasting by the Auditor-General (AG).
At a media briefing last week, Baart said there were nine critical areas found wanting by the AG, most relating to financial matters. The AG's report, released last month, qualified its audit of the municipality for the 2009/10 financial year with the least favourable rating possible, namely, an official disclaimer.
"The AG report to a certain extent is a reflection on how the municipality is administered," Baart said. She cited Chief Financial Officer Jackson Ngcelwane's explanation of the audit result: "The AG could not place reliance on… the documents or information provided and could not review them."
Baart said a major part of the disclaimer audit opinion was as a result of historical issues, the most important of which was bank documents that could not be traced. "So if you have had documents since the year 2000 that were never found, that were missing, you will never have your bank reconciliations done properly."
Baart said while the report was a call for official to step back and reflect on what they were not doing right, a standard action plan to address matters might not be appropriate, since it would not necessarily "deal with the root causes… issues that are haunting us from previous years". "It is for this reason that I have solicited support now from experts from other spheres of government," Baart said.
"We have to start with the process in Finance and ensure all the documents related to Finance are in place and are being found, so as to conduct bank reconciliations retrospectively." Baart said she had convened a meeting on 2 February with national and provincial treasury, and the Department of Local Government of Traditional Affairs. Already the National Treasury, in partnership with The German International Co-operation (GIZ), would be offering the municipality technical support.
They would set up new systems for bank reconciliations and document management, which the municipality would implement on 28 February. "It will ensure that until the end of the financial year, bank reconciliations are done monthly," Baart said.
The Department of Local Government had deployed financial experts for the month of February to help ensure the audit action plan was practical and appropriate, she said. "They have already conducted a sort of a situational analysis, by conducting interviews with the relevant officials in finance and corporate services."
Performance management was the next big stumbling point, and Baart said the aim was to ensure every employee had a job description. The AG had raised concern over a lack of internal control. "Poor supervision also contributes to the lack of internal controls, because if your supervisors and managers are not ensuring the control measures are in place, you will find the kind of audit report that we are having," she said. Baart said she experienced a lack of support when disciplining directors.
"When you discipline your directors, you don't get political support. Instead, you get the sense you're being questioned by the political leadership." She said this was worrying, because it sent a message that people with political influence were untouchables – "They are protected,” she said.
“I am mindful that the mayor has taken note, because that is an issue that is supposed be taken head-on.” “As much as we talk about these grand plans and strategies, issues of discipline, and the kind of work ethic we want to inculcate, are important," Baart said.
