The Auditor-General’s (AG) qualified audit opinion of the Tshwane Housing Company reveals a trend of mismanagement, financial shortcomings and repeated violations of the Municipal Finance Management Act (MFMA).
One reason for the qualified audit opinion is the former financial head’s refusal to cooperate with the AG.
Such conduct amounts to a direct violation of the MFMA, which requires effective and transparent financial and risk-management systems.
The fact that the Tshwane Housing Company’s CFO position is still vacant further undermines the institution’s financial stability.
In addition, the absence of a documented risk framework, the lack of formal training for officials and the repeated postponement of management meetings all point to a dysfunctional management culture. It also violates relevant legislation, which requires timely reporting and effective internal controls.
The following interventions are absolutely crucial:
• Disciplinary action against executive officials who contributed to audit failures and financial mismanagement.
• Prompt appointment of a qualified financial head with experience in municipal finances.
• Mandatory management training for all officials.
• Comprehensive review of supply chain management and project delivery systems.
• Quarterly public performance reporting, as is legally required.
The Freedom Front Plus remains committed to sound governance, decentralised accountability and the protection of public resources.
The party will closely monitor the Tshwane Housing Company’s performance and will not hesitate to escalate these issues to a higher oversight body if meaningful corrective action is not taken.
