{"id":808497,"date":"2025-01-24T12:45:34","date_gmt":"2025-01-24T10:45:34","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=808497"},"modified":"2025-01-24T12:46:25","modified_gmt":"2025-01-24T10:46:25","slug":"r2-6-billion-blow-for-south-africas-capital-city","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/808497\/r2-6-billion-blow-for-south-africas-capital-city\/","title":{"rendered":"R2.6 billion blow for South Africa&#8217;s capital city"},"content":{"rendered":"\n<p>The City of Tshwane has received another qualified audit opinion, with over R2.6 billion in irregular and wasteful expenditure. <\/p>\n\n\n\n<p>The Auditor General of South Africa released its audit findings for the City, which showed a stagnation in audit outcomes, with several massive challenges that require urgent attention.<\/p>\n\n\n\n<p>The city recorded R2.3 billion in irregular expenditure and wasteful expenditure of R347 million. <\/p>\n\n\n\n<p>Moreover, audit findings highlighted issues related to plant and equipment (PPE) management, payables and receivables, and compliance with the Supply Chain Management Regulations.<\/p>\n\n\n\n<p>The city said that the findings underscore the need for stronger financial controls, better interdepartmental coordination and adherence to governance principles. <\/p>\n\n\n\n<p>&#8220;The Executive Mayor Nasiphi Moya wishes to assure the residents of Tshwane that the City takes these findings seriously and is fully committed to implementing a comprehensive remedial action plan to address them.&#8221;<\/p>\n\n\n\n<p>&#8220;Since taking office in October 2024, the City\u2019s administration has been steadfast in its determination to<br>restore financial accountability and governance excellence in the City of Tshwane.&#8221; <\/p>\n\n\n\n<p>The city is introducing a range of new interventions as part of its consolidated Audit Outcome Remedial Action Plan, which is designed to tackle the challenges highlighted by the Auditor-General.<\/p>\n\n\n\n<p>It is also working with the Auditor-General and has requested it perform an official audit procedure on the work done by the city to address the qualification areas. <\/p>\n\n\n\n<p>&#8220;This aims to ensure that the matters raised by the Auditor-General. have been adequately addressed.&#8221;<\/p>\n\n\n\n<p>&#8220;And that it has comfort over the city\u2019s opening balances before the commencement of the audit of the 2024\/25 annual financial statements.&#8221; <\/p>\n\n\n\n<p>As per this process, the city has also proposed to make supporting information available to the Auditor-General on a staggered basis.<\/p>\n\n\n\n<p>The first batch will be submitted by 31 March and the second batch by 30 April. <\/p>\n\n\n\n<p>The city said that these measures aim to address the root causes of the audit findings and set a clear path towards sustainable improvement. <\/p>\n\n\n\n<p>It will also appropriate additional funds during the adjustment budget process towards the execution of this activity.<\/p>\n\n\n\n<p>The city said that other key actions in the Audit Outcome Remedial Action Plan include: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li style=\"letter-spacing:0px\"><strong>Property, plant and equipment management<\/strong>: Conducting a full review and physical verification of the City\u2019s assets to ensure the accuracy of our asset register and compliance with standards.<br><\/li>\n\n\n\n<li style=\"letter-spacing:0px\"><strong>Improved payables and receivables processes<\/strong>: Streamline invoice tracking, reconciling outstanding payables and strengthen collection strategies to reduce impairments.<br><\/li>\n\n\n\n<li style=\"letter-spacing:0px\"><strong>Compliance with the Supply Chain Management Regulations<\/strong>: Enhanced training and quarterly compliance audits to ensure that supply chain management processes adhere to regulations<br><\/li>\n\n\n\n<li style=\"letter-spacing:0px\"><strong>Development of standard operating procedures (SOPs)<\/strong>: SOPs will standardise key financial and operational processes to reduce inconsistencies and improve efficiency.<br><\/li>\n\n\n\n<li style=\"letter-spacing:0px\"><strong>Enhanced oversight and accountability<\/strong>: Strengthen the oversight mechanisms through regular Audit Steering Committee meetings and Executive Audit Tracking Committee meetings.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The City of Tshwane has recorded billions in wasteful and irregular expenditure, with it asking the Auditor General for help. <\/p>\n","protected":false},"author":95,"featured_media":806134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[19272,8291,9282],"class_list":["post-808497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-auditor-general-2","tag-pretoria","tag-tshwane"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=808497"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808497\/revisions"}],"predecessor-version":[{"id":808516,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808497\/revisions\/808516"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/806134"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=808497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=808497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=808497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}