I express my profound gratitude to the national Auditor General, Mr Nombembe, for sharing with us the municipal audit outcomes for the Northern Cape. The provincial government of the Northern Cape will sincerely consider the Auditor-General’s report on the municipal audit outcomes, and will take appropriate action on measures to be instituted as recommended by the Auditor-General.
Ladies and gentlemen, it is clear that in terms of the municipal audit outcomes the situation remains dire, the areas of disclaimers and the late submission of annual financial statements is unacceptable and we trust this will not be repeated in the 2009/10 municipal financial year. This requires that we do things differently, more effectively and with the utmost purpose and action.
The appointment of chief financial officers with the requisite qualifications and financial abilities is crucial in improving the municipal audit outcomes going forward in this period to 2014.
Municipalities will have to indicate now if they need support to become compliant. Mayors and councillors will have to provide the necessary leadership and oversight in this regard.
We must also, through the local government turnaround strategy which was approved by national Cabinet towards the end of 2009, strengthen and improve the capacity of our municipalities for effective service delivery. The process of the development of municipal turnaround plans has unfolded in the Northern Cape. Operation Clean Audit will be incorporated in these municipal turnaround plans.
The implementation thereof will be closely monitored by district teams made up from the Department of Cooperative Governance and Traditional Affairs (COGTA), Provincial Treasury and other sector departments. Quarterly reports will be submitted on progress with regards to implementation to provincial executive committee and national Cabinet.
It is important to note that the Provincial Treasury and the Department of Cooperative Governance and Traditional Affairs has in place a memorandum Of understanding (MOU) in terms of facilitating the implementation of Municipal Financial Management Act (MFMA) to ensure compliance in the province.
Provincial government has sourced financial expertise through the Development Bank of Southern Africa (DBSA) Siyenza Manje programme to assist in advising the Municipal Finance unit to support and monitor municipalities in improving their audit outcomes.
I wish to reiterate the point that I have made earlier to say that we have entered a period where we say that we will not renege on the promise that we have made to deliver sustainable services that will forever alter the quality of life of ordinary South Africans. We will have no choice but to get rid of people who are not willing to put their shoulder to the wheel. 2010 is the year for action and we must all be ready to work harder, smarter and faster.
In conclusion, and I am certain that each and every one of you will concur: we take the Auditor-General’s report of our accounting and financial management procedures very seriously. We also promise that we will act as a matter of urgency on the recommendations that have come forward and make improvements that will be in addition to those already acknowledged and proposed by the Auditor-General.
We will continuously strive to strengthen the capacity of our municipalities and ensure that we implement sound financial management systems. This is a responsibility we take very seriously and we dare not fail!
I thank you
Baie dankie
Ke a leboga
Siyabulela
Issued by: Northern Cape Provincial Government
11 March 2010
