The Mandela Bay Development Agency (MBDA), a municipal entity fully owned by the Nelson Mandela Bay Metropolitan Municipality (NMBMM), has welcomed the clean audit report it has received from the Auditor General (AG) for the 2012/13 financial year. The agency is also the only auditee from all municipalities and municipal entities in the Province to achieve a clean audit for this period. In the MBDA’s ten years of operation it has achieved nine consecutive unqualified audits to date.
MBDA CEO, Dr Pierre Voges explains the often misunderstood concepts of an unqualified audit versus a clean audit, “the difference is small but significant. In laymen’s terms, an unqualified audit means the AG has found the financial statements to be fairly represented by the auditee but where there has been certain findings during the audit that are reported by the AG as being matters of emphasis and that require attention and resolution by the entity. A clean audit is an unqualified audit and where no reported findings have been made by the AG and which results in an entity or municipality given a clean bill of health”.
Auditor-General Kimi Makwetu says in his consolidated report on the audit out-comes of municipalities and municipal entities in the Eastern Cape for 2012/13, “Municipal entities are independent organisations (although they are under the ownership control of the parent municipality) that perform municipal services on behalf of the municipality. The MBDA was also the only entity that has “sustainable governance controls and a control environment supporting continued clean administration and good governance. “This environment enhances the credibility of information used for enforcing accountability”
Makwetu adds that these “best practices can be copied by not only agencies but the metro”.
“The issues raised by the AG have a serious negative impact for the province when it comes to Investment promotion, donor funding and attracting the right skills to lift the economy. Fortunately, the MBDA has been fairly successful in recruiting external funding from local and international partners, investing in local urban regeneration. If not impossible, it would certainly be difficult to succeed without the strength, credibility and assurance provided by a clean, unqualified audit finding. The MBDA stands ready to assist and share best practices and experience with interested entities in the Eastern Cape.” concluded Voges.
The MBDA is in the processes of rolling out a massive investment by KFW Bank of Germany for the revitalization and socio economic rejuvenation of Helenvale, a drugs and gangs ridden suburb in the Northern Areas of Port Elizabeth.
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