Latest news with #Auditor
IOL News
15-05-2025
- Business
- IOL News
AGSA report reveals mismanagement in KwaZulu-Natal infrastructure projects
The KwaZulu-Natal Legislature in Pietermaritzburg, where the Auditor General of South Africa (AGSA) presented its findings on contractors appointed to key infrastructure projects in KwaZulu-Natal that were not qualified or capable of performing the required work leading to substandard quality and cost overruns. Image: Shan Pillay The Auditor General of South Africa (AGSA) found contractors appointed to key infrastructure projects in KwaZulu-Natal were not qualified or capable of performing the required work, leading to substandard quality and cost overruns. The AGSA found that the KwaNqetho Reservoir in the eThekwini municipality, a critical water infrastructure project, was delayed because of mismanagement. In addition, the material used around the reservoir platform indicated poor backfilling compaction, particularly on the steep slope of the reservoir. Nomalungelo Mkhize, AGSA Business Unit Leader in KZN, presented the local government audit outcomes of the Municipal Financial Management Act (MFMA) to the KZN Legislature-Standing Committee on Public Accounts (SCOPA) and the Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) on Tuesday. The AGSA looked at 15 infrastructure projects in the eThekwini, Msunduzi, uMhlathuze, KwaDukuza, Okhahlamba and uMkhanyakude municipalities. The AGSA said there were five new projects and 10 projects where they did follow-ups on the prior year findings and continued auditing the project as part of its life cycle. The AGSA also audited existing infrastructure which they identified in different stages of a project life cycle including wastewater treatment works, solid waste, landfill sites and roads. The AGSA found that the Mkhizwana Water Treatment Works project in eThekwini was delayed by 221 days due to gross negligence in the preparation of designs and drawings. Also, the Nondabuya Water Supply Scheme in the Umkhanyakude was delayed with only 726 of 1,811 households being connected to the reticulation system. The AGSA found that installation was in a worse condition compared to the previous audit. Other infrastructure delivery weaknesses include the Austerville Substation south of Durban, which was intended to supply increased and stable electricity to industrial, commercial and residential customers. The project has been in the planning phase for 15 years. The AGSA stated that this project faced significant delays due to project mismanagement, planning inefficiencies, contractor-related issues and financial mismanagement. The AGSA said that the civil works portion of the Austerville project was originally planned to be completed by 18 August 2021. However, due to multiple stoppages, the project was delayed, ultimately leading to the termination of the contractor on 25 January 2023 with only 63.97% of the work completed. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The Namibia Stop 8 Housing Project in eThekwini, aimed at delivering 343 housing units, remains behind schedule with only 29 units completed as of September 2024. The AGSA raised concerns regarding project oversight, resource allocation, and contractor accountability. Its' report stated that causes of delays were due to poor quality cost overruns and service interruptions, largely due to inadequate project planning and needs assessment. The AGSA found that many of the projects suffered from inadequate needs assessment and project planning. It found numerous cases, where the contractors were appointed were not qualified or capable of performing the required work to meet the agreed upon standards. This included delays in meeting milestones and failed to adhere to contract specifications leading to substandard quality and cost overruns.
IOL News
08-05-2025
- Business
- IOL News
IDPs should shape an economically enabled environment
Strategic infrastructure development remains a cornerstone of the effectiveness of an IDP. Image: Supplied. South Africa's municipal planning season is in full stretch as local governments carve out their respective development plans for 2025/2026. A lot is a stake for the elected public officials, with just about a year to go until the next local government elections. The Integrated Development Plan is an essential blueprint for a municipality that informs its overall framework for socio-economic development. IDPs play a fundamental role to direct municipal councils on how to allocate resources as well as how political officials aim to aid development of their areas. They are prioritised given their ability to integrate a municipality's strategic goal and force all relevant departments to be on the same page. One can say that, over the past years if not decade, respective IDPs developed across South Africa's municipalities simply look to address issues instead of creating new avenues that can foster local economic development. This is evidenced by the several reports by the Auditor General highlighting how poor planning and coordination continues to be seen; poor implementation, weaknesses in infrastructure development and service delivery that further exacerbates the poor conditions of municipalities. Interestingly IDPs still continue to be developed in full compliance. However, with processes still being ignored, this results in poor implementation and a failure to fulfil service delivery. Infrastructure and basic services remain central towards creating a healthy environment for foreign investments. This is only possible through plans that can easily address problems faced in local government to diversify economic participation and facilitate job creation. As South Africa finds way to enhance its environment for long term sustainable economic growth, IDPs need to be curated factoring key levers to facilitate enabling conditions for investments: Infrastructure Development Strategic infrastructure development remains a cornerstone of the effectiveness of an IDP. With more than R51 billion allocated, development plans need to be proactive blueprints that develop basic infrastructure projects instead of only addressing endless backlog of challenges. As the current infrastructure struggles to cater for the current demands, more work is required to ensure that infrastructure development caters for road construction, waste management services, and most critically electricity and water supply. Development of local infrastructure requires to be aligned with national government's aggressive infrastructure investment programmes set out in its Economic Reconstruction and Recovery Plan. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Business-Friendly Policies Investor friendly policies facilitate easy access and entry of new businesses in municipalities. The integration and implementation of inter-sectoral planning into IDPs, ensures that strategic plans such as Integrated Transport Plans (ITPs) and Integrated Waste Management Plans (IWMP) feed into the overall delivery of basic services that can encourage the private sector to play an impactful role in creating job opportunities and optimise local economic development. The current Review of White Paper on Local Government is one of the most critical processes being conducted by government to improve the governance and how municipalities operate for sustainable development. The White Paper will also be expected to address red tape, bureaucratic hurdles and administrative simplification in municipal processes, which will be able to make engagement between government and businesses much more efficient. Public-Private Partnerships The latest amendments to the municipal public-private partnership regulations showcase a growing need for effective collaborations amongst various stakeholders, more especially between government and private sector. Amendments include limiting the ability of accounting officers to cancel successful PPP projects, providing greater security for investors. This includes enhancing transparency and accountability in municipal PPP project management. With the decline of new project transactions in South Africa, harmonizing the environment with long term plans and programmes through the IDP can encourage private sector to participate in the delivery of much‐needed infrastructure, and ease pressure on stretched government finances. As the IDP prioritises inclusive economic growth, working closely with the private sector for enhanced developments will be capable to intensify socio-economic upliftment, foster comprehensive urban development and channel municipality's effort to integrated and sustainable urban planning. Concerted efforts and a pragmatic approach to IDP planning is the only way possible to ensure municipalities sustainably grow and remain attractive for business to operate in them. However, this can only be possible if public officials can commit towards actions and planning that make development plans more meaningful instead of being idealistic dreams. Nkululeko Dhlamini is the Public Affairs Manager for Nestle Eastern and Southern Africa Region (ESAR). Nkululeko Dhlamini is the Public Affairs Manager for Nestle Eastern and Southern Africa Region (ESAR). Image: Supplied.
Yahoo
13-03-2025
- Business
- Yahoo
Senate bill streamlines audits of volunteer fire departments
CHARLESTON — Volunteer fire departments in West Virginia are under the microscope in the current session of the West Virginia Legislature. The West Virginia Senate on Wednesday unanimously passed Senate Bill 500, giving the West Virginia Legislative Auditor "the authority and duty to make a regular review of the finances of each volunteer fire company" in the state. Under existing West Virginia law, both the Legislative Auditor and the State Auditor conduct rolling audits of each of the state's more than 400 volunteer fire departments. Customarily, the Legislative Auditor reviews only state funds a volunteer fire department received during a fiscal year, while the State Auditor reviews each department's entire finances. "Senate Bill 500 will eliminate this unnecessary overlap making the process more efficient and removing the burden of duplicative financial examinations by multiple state agencies," State Auditor Mark Hunt said. Although SB 500 consolidates the audits of volunteer fire departments with the Legislative Auditor, existing state Code will remain unchanged as to the requirement that audits or financial examinations "shall be scheduled as to complete a review of each volunteer fire company at least once every five years." Hunt credited State Sen. Laura Chapman, R-Ohio County, for sponsoring the bill and bringing the issue before the Legislature. "Under current law, which will remain unchanged, the scope of the audits will include all income of the volunteer fire departments, regardless of the source of funds, the assets, liabilities, and all expenditures of the departments," Chapman said. "Likewise, current law also provides that our volunteer fire departments may be audited more than once in a five-year period if there is reason to think that loss, mismanagement, misuse, or waste of funds is occurring." In those instances, SB 500 would require the Legislative Auditor — "upon discovering any concerning or suspicious financial transactions" — to report the matter to the State Auditor's Office "to investigate and pursue correction or prosecution … of any misconduct, mismanagement, misuse, or waste." Senate Bill 500 now goes to the West Virginia House of Delegates for consideration and passage. The Legislature's 60-day regular session concludes on April 12.
