SPEAKING NOTES FOR THE CITY MANAGER ON THE AUDITOR GENERALS REPORT

I would like to acknowledge the Auditor General’s office for their thorough and diligent work in evaluating our city’s financial health and operational integrity.

It is through such rigorous assessments that we can strive for transparency, accountability, and continuous improvement in our public service delivery.

The Auditor General has issued the City of Ekurhuleni an unqualified audit opinion. This outcome indicates that our financial statements present a fair and accurate picture of our financial position and that they have been properly prepared in accordance with the relevant financial standards prescribed in the Municipal Finance Management Act.

This is a testament to the hard work and dedication of our strategic management team and all city employees who strive to maintain high standards of financial management and good governance.

However, it is imperative to address the findings related to procurement and supply chain processes. These findings, while concerning, provide us with a clear roadmap for enhancement and rectification of operation issues within the finance department.

In response to the AG’s findings, we are committed to taking the following steps:

1. We will conduct a comprehensive review of our current procurement and supply chain processes to identify and strengthen weak internal controls, ensuring that all transactions are conducted in a transparent and accountable manner.

2. We will conduct a city-wide training program for all employees involved in procurement and supply chain processes. This program will focus on ethics, compliance, and best practices in procurement to ensure that our staff are well-equipped to carry out their duties effectively and in accordance with the MFMA.

3. We will introduce more robust monitoring mechanisms and reporting tools to ensure that deviations from established processes are identified and addressed proactively. This will include the continuation of Operation Clean Audit and reviews of procurement activities to detect and prevent any irregularities or non-compliance.

4. Lastly, we recognize the importance of engaging with our suppliers and contractors to ensure they understand our procurement policies and the standards we expect from them. We will strengthen our communication and collaboration with all external partners to ensure mutual compliance and accountability.

While the unqualified audit opinion is a positive outcome, we do not take the findings lightly. We are fully committed to addressing the issues identified in the AG’s report and to implementing the necessary improvements.

We see this as an opportunity to strengthen our systems and processes, ensuring that the City of Ekurhuleni not only meets but exceeds the standards of governance, transparency, and accountability expected by our citizens and stakeholders.