Latest news with #Maluleke
TimesLIVE
2 days ago
- Business
- TimesLIVE
Auditor-general demands action from KZN Cogta MEC in troubled uMkhanyakude municipality
Auditor-general Tsakani Maluleke has instructed KwaZulu-Natal Cogta MEC Thulasizwe Buthelezi to intervene in the trouble-torn uMkhanyakude district municipality. Buthelezi, an IFP deployee in the provincial legislature, and ANC-led uMkhanyakude officials are at loggerheads over the provincial cabinet's decision to place the council under administration. uMkhanyakude officials are resisting the decision, saying it is politically motivated. They have since taken Buthelezi to court over the matter. Earlier this month, Buthelezi was forced to announce that the municipality had been placed under administration at the entrance of the council offices after he was denied entry. On Sunday, Buthelezi said he had received formal correspondence from Maluleke instructing him to intervene in uMkhanyakude. 'The auditor-general has requested that I intervene in the uMkhanyakude district municipality due to the municipality's consistent failure to address material findings. These findings stem from the municipality's inability to implement a credit and debt collection policy, as required by section 62(1)(f) (ii) of the Municipal Finance Management Act (MFMA),' said Buthelezi. A material irregularity is defined in the Public Audit Act (PAA), as 'any noncompliance with, or contravention of, legislation, fraud, theft or a breach of a fiduciary duty identified during an audit performed under this act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the public'. In the correspondence, Maluleke highlighted that 'The failure of the municipality to implement the municipality's credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality'. The AG further stated that: 'The failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA's material irregularity committee, duly delegated, to approve reporting in the audit report of the municipality on the material irregularity with recommendations, as provided for in section 20(4) of the PAA, read with regulation 4(3) of the MI regulations on the steps the accounting officer should take to address the material irregularity within a stipulated period in the audit report.' Buthelezi said he was aware of the grave nature of the issues raised by Maluleke, which were emphasised during a meeting with the AG on July 23. He said he was committed to acting in the interest of the residents of the uMkhanyakude district. 'These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the district,' he said, adding that the AG has requested a formal report from him by August 15.
The Citizen
6 days ago
- Business
- The Citizen
Auditor-General's war on waste and corruption yields R4.5bn
But it's a war that is far from won. A good outcome, but Auditor-General Tsakani Maluleke seems exasperated at the lack of accountability among those charged with spending public money. Image: Brand South Africa Auditor-General (AG) Tsakani Maluleke says R4.5 billion has been recovered over the last five years after being flagged as irregular. Some of this came from the recovery of part of the R700 million awarded by the Energy and Water Sector Education and Training Authority (Seta) for training programmes where little to no value was delivered, and in violation of National Treasury rules which require evidence of services rendered before payment. The R4.5 billion recovery over five years may seem like chump change given the magnitude of the problem confronting the AG. Its latest report on local government identifies R8.74 billion lost in 285 municipalities as a result of non-compliance with the law and suspected fraud. Speaking at a Centre for Development and Enterprise (CDE) presentation, Maluleke seemed exasperated at the lack of accountability among those charged with spending public money. 'I've been here at AG for 13 years and we've looked at this from every direction and concluded we have to look at governance. ALSO READ: Government overspent or wasted R49 billion since 2019, says Auditor General 'Basic management disciplines are not in place,' she said. Asked what improvements she observes, Maluleke pointed to the reduction in the number of disclaimers in AG audit opinions – down from 28 to 14 – and the not-insubstantial R4.5 billion recovery in funds. The recovery operations were fortified by changes in the law in 2019 that gave the AG expanded powers to demand action and accountability for material irregularities. These include payments for goods and services not received or of poor quality, penalties imposed on municipalities for non-payment of Eskom and water board bills, and revenue lost due to unbilled accounts or unrecovered debts. The AGSA's expanded powers allow it to issue stronger recommendations and refer cases to bodies like the Hawks or the Special Investigating Unit for disciplinary action. ALSO READ: 'Culture of lack of accountability': Government departments, SOEs rack up R120bn in irregular expenditure No easy task The perception of auditing as a safe and sedentary occupation was shattered by the recent murder of Ekurhuleni's senior auditor, Mpho Mafole. Mafole, a former Auditor-General South Africa (AGSA) staffer, was investigating R2 billion in missing funds when he was gunned down. 'We're under threat of violence every day,' said Maluleke. 'We must get to the bottom of who did what and why. Our thoughts are with his family.' With 4 000 staff, including 900 chartered accountants, the AG's office conducts over 1 000 audits annually across all public institutions, as mandated by Chapter 9 of the Constitution. These audits assess the credibility of financial statements, performance against objectives, compliance with the rule of law, and systemic issues in governance. The reports are intended for citizens, parliamentarians, ministers and departmental management, backed by actionable advice to improve operations. AGSA is one of the country's most respected institutions, having gained public trust by naming and shaming those involved in squandering or looting funds. Its independence is constitutionally guaranteed, making it one of only two global audit bodies with full autonomy, according to the World Bank. ALSO READ: Decisive intervention needed for municipal performance — BLSA Municipalities still an issue Municipalities, however, remain a weak link, with mayors, municipal councils and executive teams failing in their oversight duties. This extends to the provincial level, where many of the responsible leaders don't even bother to read the AG reports. 'When councils are unstable, performance suffers, budgets go unfunded, and infrastructure crumbles,' said Maluleke. Many municipalities misallocate grant funds to pay debts, like last year's Eskom bills, or hire underperforming staff instead of maintaining critical services such as water and electricity. This creates a vicious cycle: economic strain reduces ratepayer payments, squeezing municipal cash flow and crowding out essential infrastructure spending. Operation Vulindlela, set up by President Cyril Ramaphosa to reform the economy as a trigger for growth, shows spending on salaries in SA's cities increased 84% between 2010 and 2014, while property rates and service charges have virtually doubled over the same period. Of the eight metros in SA, only Cape Town achieved a clean audit, meaning it has credible financials and no significant non-compliance. Three metros received unqualified audits, but four – including Johannesburg – failed to present reliable financial statements. ALSO READ: SIU finds no corruption in City of Joburg but Auditor-General has concerns City of Joburg Joburg's deterioration at the hands of squabbling councillors is visible to the eye but preceding this was a steady weakening in its institutional capacity, marked by poor project management and irregular spending – including the award of R972 million in tenders to family members linked city officials and councillors for the extension of the BRT/Rea Vaya bus system in 2023. This was flagged by the AG for its potential conflicts of interest, though she says there is no law that specifically prohibits the award of tenders to close family members or business associates. The real question was whether the City of Joburg failed in its oversight duties. 'Joburg has high levels of irregular spending and does not seem to be getting [it] under control. The [city] council, speaker and mayor don't seem to be decisive,' she said. Maluleke attributes this to poor financial management, noting that municipalities often lack basic disciplines like matching budgets to performance goals. Operation Vulindlela's latest report (July 2025) echoes this, advocating for financial reforms to stabilise municipalities through better revenue collection and governance. High salary costs exacerbate the problem, with some municipalities prioritising personnel over infrastructure, a trend Maluleke links to weak councils fostering a culture of impunity. ALSO READ: Eastern Cape local municipality is the worst run – Auditor General Some bright spots It's not all doom and gloom. Midvaal in Gauteng, with clean audits for over a decade, exemplifies strong stewardship, maintaining quality roads and services. Maluleke's audit staff complain of speeding tickets because the roads in Midvaal are in such good order. The municipality's responsiveness is what sets it apart, said Maluleke, contrasting this with poorly run municipalities where living conditions deteriorate. The 2024 Public Procurement Act aims to close loopholes using technology for better oversight, but Maluleke cautions that no legislation works if rules are flouted without consequence. She advocates for stronger codes of conduct, skilled leadership, and internal controls to enforce accountability. AGSA has come under political attack from different quarters but remains steadfast, protected by rigorous, evidence-based processes. Maluleke doesn't sign reports herself; a qualified team ensures objectivity. 'We should never tolerate [audit] disclaimers,' she said. By referring cases to investigative bodies and pushing for governance reforms, there is hope that the war against impunity and waste will eventually win the day. But we're still a long way from that. This article was republished from Moneyweb. Read the original here.
The Citizen
7 days ago
- General
- The Citizen
North residents receive batch of title deeds
The metro has advanced housing security and dignity for residents in the north of Pretoria by officially handing over title deeds to the Stinkwater community in Hammanskraal on July 21. The handover was led by the MMC for Housing and Human settlements, Aaron Maluleka, at a ceremony at Fatlhogang Primary School. Maluleka said this important event forms part of Tshwane's broader efforts to redress historical imbalances and promote homeownership through security of tenure. City of Tshwane hands over title deeds to Stinkwater residents. @CityTshwane — Dr Nasiphi Moya (@nasiphim) July 21, 2025 He emphasised the transformative impact of secure homeownership. 'This is not just a piece of paper. It is a key to opportunity, stability, and empowerment. A title deed means you now have a legal asset, dignity, and a foundation to build on for future generations,' Maluleke said. The City of Tshwane celebrates a milestone in housing delivery with title deed handover in Stinkwater, Region 2 @maluksa — City of Tshwane (@CityTshwane) July 21, 2025 The metro, in partnership with the North West and Gauteng provincial departments of rural development and land reform and Land Tenure Services, proudly announced this significant achievement in the ongoing process of land reform and tenure security with the formalisation and transfer of property rights in Stinkwater extensions 4 to 8 (Ditengteng). Maluleka handed over the first batch of ten title deeds, with Human Settlements officials continuing to distribute the remaining documents throughout the day. He explained that though the Tenure Upgrading Project, more than 3 470 title deeds are being formally transferred to residents, empowering families and affirming their right to secure, residential tenure. 'This initiative implements the national land reform agenda, aligning with constitutional obligations to promote property rights and community development.' He said the project began with the acquisition of private land through the Settlement Land Acquisition Grant, transferring portions 7–11 of the farm Stinkwater no 97- JR to the city on behalf of the intended beneficiaries. Maluleka added that the beneficiaries have received registered title deeds to their properties at no personal cost, demonstrating their commitment to meaningful and inclusive development. He said formal approval for the project was secured under the Provision of Land and Assistance Act, with R6,28-million allocated for upgrading, registration, and township planning. He also reminded homeowners to pay their municipal services. 'We also reminded homeowners of their responsibilities, which include paying for municipal services, safeguarding their title deeds, drafting legal wills for succession planning, and considering insurance to protect their homes from unforeseen disasters,' Maluleka said. In his closing remarks, Maluleke advised beneficiaries not to sell their government-subsidised houses within the eight-year pre-emptive clause period as stipulated in the Housing Act. Resident, Sophy Mokoena (99), was happy to receive her title deed, and commended the administration and thanked Maluleka and departmental officials. ALSO READ: Five hour power outage to hit these Pretoria suburbs Do you have more information about the story? Please send us an email to [email protected] or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
22-07-2025
- Business
- IOL News
Auditor-General highlights rampant R1bn irregular expenditure in Johannesburg
Auditor-General Tsakani Maluleke pointed out that the malpractice observed in Johannesburg is not an isolated issue, but part of a broader trend seen across major municipalities in South Africa. Image: Thobile Mathonsi / Independent Newspapers The Auditor-General Tsakani Maluleke has drawn attention to the alarming reality of irregular expenditure within the City of Johannesburg (CoJ), revealing that the municipality was leading the nation in this regard with contracts exceeding R1 billion awarded to contractors with connections to officials. In a webinar hosted by the Centre for Development and Enterprise (CDE) Conversations, Maluleke pointed out that the malpractice observed in Johannesburg is not an isolated issue, but part of a broader trend seen across major municipalities in South Africa. However, she said a concerning aspect of this issue related to existing National Treasury regulations that allow municipalities to pay start-ups in advance for transactions not exceeding R2 000. She highlighted that these regulations may unintentionally facilitate corrupt practices within the CoJ. "The CoJ has high irregular expenditure year-on-year and it does not seem to be a situation that is getting under control. So it raises questions about whether the Council, the Speaker, the Mayor are decisive," Maluleke said. "It is undesirable, it raises a series of conflicts. It raises the question if the contract is in the interest of the city or in the interest of the the individual concerned." Maluleke emphasised that while the law did not expressly prohibit municipalities from engaging in transactions with family members of councillors or employees, there was a vital obligation to disclose such dealings, particularly when they exceed R2 000. Video Player is loading. 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Next Stay Close ✕ "We have got to look at different players in the ecosystem of accountability and our analysis is local government is a different sphere of government from provincial and national government, but they are not meant to be autonomous," she said. "They are not meant to operate as islands. These are public resources. We find too many municipalities do things that nobody hold them accountable for. And then they all wait for the AG to come every year they all lament and then we start the thing again next year." Maluleke said her experience in recent years showed that when accounting officers faced scrutiny, they were often transferred, creating instability that hampers accountability. "Our experience in the last few years is that accounting officers where we are zeroing-in to issue a certificate of debt, they get moved around and because we dont hire or fire them," she said. "What you find is that a Council will keep that role very unstable, make someone act for six months another one for six months. It just delays the process. So it might delay the AG but worse of all it continues to weaken the institution. It must often be deliberate." Maluleke said accounting officers too often did not go into the details of the plans that they sign off on. "All too often they don't do that. They might tick a box and say we have seen the plan, but you never seen evidence of suggestions that should be amended so that there is coherence for a province," she said. "No wonder then some of the plans are cut and paste jobs by consultants, and yet they pass and then when they are being implemented, all manner of adjustments are made during the year, which runs into a different costs far way above what it should have cost. "We have got to ask where is the provincial legislature when we have gone into this. We find some of them did not know they were supposed to get certain reports let alone look at them. Sometimes they get them bit did not do anything with them. "I believe we must be much more impatient with municipal leadership that simply does not submit financial statements because these are public funds. And so the very least you can do, whether or not the statements are credible, is to submit them. It's something we should never tolerate, that and disclaimers is something we must leave behind. 30 years into democracy that should not be our experience." BUSINESS REPORT
TimesLIVE
14-07-2025
- Politics
- TimesLIVE
MPs to seek legal opinion on allegations against auditor-general
The standing committee on the auditor-general met to consider a legal opinion from parliament's constitutional and legal services office on how to proceed with a complaint lodged by a former staff member against auditor-general Tsakani Maluleke. The complaint, submitted in August 2022, alleged misconduct by Maluleke in relation to financial transactions involving her predecessor, the late Thembekile Kimi Makwetu. Mlungisi Mabaso, a former chief people officer, claimed Maluleke, while serving as deputy auditor-general, improperly authorised an R860,000 advance on deferred compensation to Makwetu and a R575,000 payment for bond transfer costs. He also questioned a subsequent interest payment to Makwetu's widow. The auditor-general's office denied wrongdoing and commissioned an external legal opinion by advocate Werner Krill and an investigation by Bowmans. Both found no evidence to support the allegations. According to a statement from the auditor-general in 2022, Mabaso was dismissed after an independent disciplinary process for gross misconduct, among other charges. The matter was brought to the attention of the sixth parliament's committee, which held closed and open sessions in August and September 2022. However, no formal resolution was adopted and no communication was sent to the complainant. In February 2025, Mabaso resubmitted the complaint to the committee, alleging it had been improperly handled and requesting it be formally investigated. Presenting the legal opinion, Fatima Ebrahim of the constitutional and legal services office, said while the previous committee had engaged with the matter, the absence of a formal outcome had contributed to perceptions of a lack of transparency. 'Unfortunately there's no report or resolution regarding the findings or conclusion of the previous committee on the matter,' she said. Ebrahim recommended the committee apply its mind and reach a resolution, either to reopen the investigation or conclude it based on the available evidence. The legal opinion emphasised the constitutional status of the auditor-general as a Chapter 9 institution and the importance of safeguarding its independence, impartiality and dignity.
