DA: Only Section 139 Administration can stop Ugu District Municipality’s dysfunctionality

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MEDIA STATEMENT ON UGU MUNICIPALITY BY THE DA:

The Auditor General has painted a gloomy picture of the state of financial affairs at the Ugu District Municipality. The Adverse Audit Opinion for 2017-2018 means the municipality is only one step away from a Disclaimer which is the worst possible outcome for a municipality.

Bearing in mind that Ugu received a Qualified report for the previous year, described then by the municipal manager Mr DD Naidoo as an “embarrassment”, the regression has taken on a whole new meaning.

With seven months of the current year completed, and if there is no meaningful improvement, it is quite possible that Ugu is heading for a Disclaimer in next year’s AG report. The end point of such a findings are poor service delivery, suffering residents and a completely dysfunctional municipality.

For the benefit of the reader the various audit opinions are briefly categorized as follows:

·         Clean Audit: Everything done the way it should be.

·         Unqualified Audit with Findings: Not bad, but could compromise accountability.

·         Qualified Audit: Did not manage and account for finances to achieve best results.

·         Adverse Audit: Numerous problems throughout, and little done according to correct via rules and procedures.

·         Disclaimer: Things are so bad that reliable evidence cannot be produced to support financial statements.

The current adverse report included a host of negative findings across the entire spectrum of Ugu management which amongst others were; poor financial controls and VAT disclosures, lack of effective asset management, unauthorized disposal of capital assets, deficiencies in procurement and contract management, no consequent management of unauthorized expenditure, poor responses by management and political leadership …. and many, many more!

The external audit committee has been sounding the alarm bells for a long time and has highlighted the lack of consequent management above all else. Had all their concerns been adequately addressed this appalling situation might not have arisen. It must be mentioned that a further aspect contributing to this shocking state of affairs is the frequency of cancelled portfolio meetings. The finance portfolio convened on only three of the ten scheduled occasions, and the other portfolios did not convene regularly either.

The Democratic Alliance has on numerous occasions called the Ugu District Municipality to be placed Section 139 administration. We have even petitioned the MEC of COGTA to resolve the problem. It’s very clear that MEC Dube-Ncube is rather following internal ANC factions instead of putting service delivery of Ugu’s residents first. The Democratic Alliance will be taking this matter to National Council of Provinces for national government to intervene in this matter. The residents of Ugu deserve better services and a better government. The chance to vote in a better government is coming in May. We encourage all residents to exercise this right.

Cllr Peter Naude
DA Ugu District Councillor
082 4326665
Dr Rishigen Viranna MPL
DA Ugu Constituency Head
083 4436418

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