CONCERNS ABOUT COUNCILLOR CANDIDATES WITH NO PROPER BUDGET SKILLS

DELIVER:  Municipalities  must deliver quality  service to the people

By WSAM reporter

Most of the South African political party councillor candidates who are standing for the upcoming local government elections do not have the skills to deliver sound budgets.

This is according to Russell Morena the CEO of South African Institute of Government Auditors (SAIGA). He  believes his organization can help councillors with basic financial and accounting skills to at least be able to deliver proper budgets and financial reports.

Morena says according to a report released by the South African Local Government Association (SALGA), about 62% of local councillors had been unable to use basic computers to enable the passing of crucial municipal budgets. The report points out another issue that is plaguing the local government sphere which is poor financial management, with many municipalities being flagged by the Auditor-General.

“Additionally, SALGA found only seven municipalities were doing well while 31% were dysfunctional, 30% were functional and 32% were in distress,”  says Morena. The  report by SALGA along with the latest audit report on Local Government Audit Outcomes which shows that local government finances have reached R26-billion in irregular expenditure in the 2019-20 financial year, are perfect examples of the lack of skill by local government leaders.  Morena says that the R26-billion in irregular expenditure could have been prevented with the ‘’up-killing’’ of local government leaders and implementation of proper financial systems and controls in municipalities.

“Public officials are entrusted with the public resources to serve the citizens of this country. Municipalities are mandated to deliver quality service to the people. It is crucial to note that there is a need for proper financial systems and controls in our local government. Irregular expenditure can be minimised with proper skills and competencies in the structures of our local government.”

Morena believes that a councillor at any local municipality which controls millions of rands, need to be able to understand basic finance and accounting to be able to get the basics of an income statement and needs to be ethical.

“As SAIGA, we remain resolute in the stance that our public structures must maintain a low tolerance for financial transgressions or transgressions of any kind as that ensures a smoother running of the country in all respects. We hope we will receive capacitated individuals.”