Katlego Sekhu

The front-page story in The Sowetan this morning reports that Limpopo municipalities spent a whopping R280 million on financial consultants during the last auditing year.
Siz The World brought in Chartered Accountant Khaya Sithole to shed some light on this puzzling situation.
They also discussed the extent of the Auditor General’s responsibility in addressing and fixing this issue.
Kaya Sithole pointed out that many municipalities lack the internal capacity to handle the necessary work.
“What they tend to do at the very last minute is reach out to an army of consultants. The risk associated with taking up the job is high and it influences the high prices.
“The crux of it is that South Africa has decided that it has 257 different municipal structures.South Africa, unfortunately, doesn’t have 257 competent finance teams that can go and work in these municipalities.It is even worse in the rural municipalities, as the incentives that would attract the constituent people do not exist.”
Said Kaya Sithole in part.
Listen to the full discussion in the podcast.
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