Cross-cutting problems lead to service-delivery inefficiencies, says new report - Service-delivery issues, procurement inefficiencies and cadre deployment continue to plague municipalities, according to the Bureau for Economic Research
, and undertaken in terms of the Municipal Finance Management Act, that institution was unable to audit contracts worth R1.43-billion, because municipalities did not provide the required documentation and evidence to support the procurement processes. The audit outcomes report is based on audit work performed on municipalities and their entities.
“There is no denying the need for municipalities to be audited, but the focus on audit compliance and the risk of expenditure being classified as fruitless and wasteful creates a disincentive for managers to undertake projects that require working across different spheres of government or with the private sector,” according to the note.
The BER said service delivery in metropolitan municipalities creates a very different challenge to service delivery in sparsely populated rural areas, which also affects how much revenue a municipality can generate. The final problem hampering service delivery, according to the BER, is cadre deployment, which has resulted in a skills shortage that exacerbates the issue.
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