NOT only has Joburg received its third consecutive unqualified audit report from the auditor-general, but each of the City's municipal-owned entities (MOEs) have for the first time received unqualified audit reports.
"A 'clean audit' is a significant achievement for a city the size and complexity of Johannesburg," said Executive Mayor Amos Masondo at a press briefing.
"If we take into account the current global economic climate and the tough environment experienced by both the public sector and private companies across the world, it is worthy of being celebrated and is something to be proud of."
The MOEs are Metrobus, Johannesburg Roads Agency, Joburg Theatre Complex, Roodepoort Theatre, City Parks, Johannesburg Zoo, Johannesburg Social Housing Company, Johannesburg Development Agency, Joburg Market, Johannesburg Property Company, Johannesburg Tourism Company, Metro Trading Company, City Power, Joburg Water and Pikitup.
Masondo referred to President Jacob Zuma's directive in 2009 that finances were one of the government's primary priorities for 2010. Minister of Co-operative Governance and Traditional Affairs Sicelo Shiceka launched Operation Clean Audit 2014, which requires all 283 municipalities countrywide to obtain clean audits by 2014.
"We are thus proud to report that South Africa's largest city, the flagship of our economy, commerce, investment tourism and culture, has achieved this goal well in advance of the deadline - and we have proven that we can sustain it," added Masondo.
He explained that the City had established its own Operation Clean Audit programme in 2004. This involved establishing the Johannesburg Risk and Audit Services unit, which had the goal of identifying high-risk areas. The Independent Group Audit Committee works with private sector professionals in this regard.
Masondo was confident that the successive clean audits would strengthen investor confidence, at the same time enabling the City to improve its credit ratings.
It has for the past two years achieved a long-term AA-(zaf) rating from the world ratings body, Fitch Ratings. The short-term rating for 2008 and 2009 was F1+(zaf).
The best long-term rating for a city is AAA(zaf), while the best short-term rating is F1+(zaf). The rating refers to the relative ability of an entity to meet its financial commitments.
In May 2009, Joburg announced a budget of R26,3-billion, the biggest municipal budget in the country. In February, the mayoral committee member for finance, Parks Tau, will announce his 2010 budget.
Masondo cautioned that despite the unqualified report, the auditor-general highlighted the need to improve the "management of fruitless and wasteful expenditure".
"I want to assure you that the City will look into all of these and correct them as part of our quest to improve the overall quality of our administration."
He stressed that Johannesburg would be striving for better clean audit reports, not for their own sake but to improve service delivery and the quality of life for all its people.
"In the final analysis, the clean audit is a victory for the people of Johannesburg, its residents, its ratepayers, its business community, all civil society organisations and communities."Source: Joburg
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