The City of Tshwane will today appear before Parliament on its latest poor audit outcome. The Democratic Alliance (DA) calls on the Mayor and her team to be completely transparent with Parliament and not hide the recent R4.7 billion unauthorized expenditure backdated to a closed audit.
For the financial year in question (2024/2025) Tshwane received a qualified audit opinion with findings. The Auditor-General reported R1.2 billion in unauthorised expenditure recorded in the one financial year, however, last week the ANC government approved a report that declares an additional R4.7 billion worth of unauthorised expenditure backdated into the already closed and audited financial year.
This attempt to hide unauthorised expenditure in a previous financial year underscores the corruption crises under the ANC-led coalition. This is nothing more than a desperate attempt to cover up the extent to which the City is being driven into financial collapse by corruption, mismanagement and political patronage.
Even before this attempt to cook the books, the Auditor-General had already identified several suspected fraud indicators in Supply Chain Management. Instances like these speak to possible collusion between officials and bidders.
It is then no coincidence that hundreds of millions of the R4.7 billion they are trying to hide in backdated financials, was in fact spent on contracted services recently highlighted during the Madlanga Commission. Specifically, it became apparent during the Commission that collusion between officials and individuals outside the organisation has become the norm.
Further, it was also highlighted that the Deputy Mayor and MMC for Finance, Cllr Eugene Modise, has been linked to companies doing business with the City. The breakdown of the R4.7 billion sees the Water and Sanitation Department with an additional post audit unauthorised expenditure of R1.5 billion, including R279 million spent on water tankers. The Metro Police department has R334 million in additional post audit unauthorised expenditure, including R147.3 million on watchmen services.
Importantly, the Mayor and her team must commission the investigation called for by the DA into the allegations raised at the Madlanga Commission insofar as they relate to the City of Tshwane, its officials, political office-bearers, and political parties represented in Council. Identifying exactly where the rot starts is the first step in cleaning house.
The DA will continue fighting to expose corruption, protect public money, and restore clean, accountable governance in South Africa’s capital city.