THE REGRESSION OF AUDIT OUTCOMES IN THE CITY OF EKURHULENI
BY : CHANON LECODEY MERRICKS ONLINE EDITOR KASiBC_AFRiCA
The Economic Freedom Fighters (EFF) Gauteng expresses serious concern over the regression in audit outcomes in the City of Ekurhuleni for the 2024/25 financial year. According to the Auditor-General’s report, the City received a qualified audit opinion with material findings.
A qualified audit opinion is issued when an institution’s financial statements contain material misstatements, indicating weak financial management and the potential for irregularities and corruption.
This outcome represents a clear regression from previous audit results achieved when the EFF was entrusted with financial oversight in the City. This regression must be understood against the backdrop of the ANC in Ekurhuleni removing the EFF MMC for Finance under the false promise of improved performance and a clean audit outcome.
These developments further reinforce the EFF’s long-held position that the executive changes were driven by narrow political interests rather than performance considerations.
The Auditor-General further highlighted significant irregular expenditure arising from the contravention of supply chain management and preferential procurement regulations. The report also raises serious concern over material losses from traffic fines, amounting to R2.74 billion in impairment, which constitutes 82% of total traffic fines.
Additionally, the City recorded R858.4 million in technical electricity losses–energy lost before reaching end users due to poor infrastructure–and R2.2 billion in non-technical losses. These include losses resulting from administrative failures, negligence, electricity theft, meter tampering, and illegal connections.
The audit findings further reveal that although corrective action plans were developed to address prior audit findings, these were not implemented by the relevant levels of management. This reflects a serious failure of leadership and underscores the incompetence within the department responsible for Strategy, Monitoring and Performance in the City of Ekurhuleni.
Of grave concern is the City’s over-reliance on revenue collection from water and electricity to fund service delivery. The failure to maintain infrastructure and ensure effective metering systems severely undermines revenue collection and threatens the City’s ability to deliver basic services.
The EFF condemns the deteriorating state of governance and financial management in the City of Ekurhuleni under the current misleadership of the Executive Mayor. Rather than providing decisive leadership, the Mayor remains preoccupied with hollow political manoeuvres and self-serving publicity campaigns.
The EFF Caucus in the City of Ekurhuleni will intensify its oversight role to hold both the executive and the administration accountable. Public funds must not be misused to enrich individuals at the expense of service delivery to the people.
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