Latest news with #publicaccounts
Zawya
15-07-2025
- Business
- Zawya
South Africa: Cooperative Governance and Traditional Affairs (COGTA) Committee Mobilises Joint Oversight to Tackle Municipal Audit Failures
The Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA), together with the Standing Committee on the Auditor-General, the Standing Committee on Public Accounts (SCOPA), and other relevant parliamentary oversight committees, have committed to a coordinated approach to municipal oversight. This follows the alarming municipal audit outcomes that the Office of the Auditor-General (AG) reported to the committee earlier this year. During the committee meeting this morning, the Chairperson, Dr Zweli Mkhize, expressed deep concern at the lack of progress in municipal finances. The audit outcomes for local government for the 2023/24 financial year showed that only 16% of 257 municipalities achieved clean audits, while the rest either regressed or remained stagnant, with audit opinions ranging from qualified to disclaimers or non-submissions. When she presented the audit outcomes to the committee earlier this year, the AG noted that, despite having exercised all available remedial powers under the amended Public Audit Act, the audit outcomes remained largely unimproved. In response to this, Dr Mkhize said that the committee will adopt a revised and more collaborative oversight model with a focus on intergovernmental accountability. Based on this new model, the committee will, with relevant oversight committees, conduct joint visits to provinces and municipalities, beginning with the Free State on 24 and 25 July. Oversight visits to the North West and Eastern Cape will then follow. According to the Chairperson, the committee wants to avoid duplication, promote institutional coherence and ensure that every sphere of government accounts for its constitutional responsibilities through this collaboration. During these oversight visits, Members of Parliament will engage with Premiers, Speakers of the provincial legislatures, Members of Executive Councils (MECs), municipal mayors, Speakers of municipal councils, and accounting officers. Provincial legislatures will also be involved in the process. 'The purpose of this,' the Chairperson said, 'is to evaluate the systemic causes behind repeat audit failures and to demand clear responses on what corrective actions have been taken and what measures are in place to prevent further regression.' The focus is on accountability and ensuring that there are consequences to prevent repeat offenders, the Chairperson said, adding that this will help improve governance and ensure effective service delivery. He said the committees would pay particular attention to repeat disclaimer audit opinions, the poor quality of financial statements, overreliance on consultants without any tangible improvement, and persistent irregular expenditure. Unfunded budgets, non-functional internal audit units and poor contract management will also come under the spotlight. Dr Mkhize confirmed that the committee sought legal clarity about coordinating oversight across spheres of government. He said the committee solicited several legal opinions to ensure the planned oversight is rooted in the principles of cooperative governance with due regard for the autonomy of each sphere of government. The Chairperson said the committee is satisfied that the oversight plan now aligns with constitutional provisions. 'This new approach,' he said, 'reflects Parliament's commitment to proactively preventing dysfunction rather than reacting to failures. It is designed to hold not only municipalities accountable but also provincial governments, which are constitutionally obligated under Section 154 of the Constitution to support and monitor local government. Premiers and MECs will therefore be asked to account for how they have fulfilled their oversight roles, particularly in cases where municipalities have consistently underperformed.' The Chairperson said this joint oversight model is an institutional response to the Auditor-General's earlier call for decisive intervention and her letter to the Speaker of the National Assembly. 'The Office of the Auditor-General should not be placed in a position where it is compelled to perform administrative duties, such as correcting municipal submissions,' he said. 'The AG's function is to provide independent audit outcomes, not to compensate for governance failures.' Dr Mkhize reiterated the importance of this new collaborative oversight approach and said it is an important shift from fragmented accountability to a much-needed collective responsibility. 'We intend for this model to serve not only as a corrective measure but also as a blueprint for systemic reform and to ensure that audit reports reflect tangible improvements in governance and service delivery at the municipal level,' he said. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Bloomberg
02-07-2025
- Business
- Bloomberg
Italy to Stay on Path of Fiscal Prudence, Finance Minister Says
Italy will continue to stick with the fiscal prudence that has allowed the country to reduce its borrowing costs, Finance Minister Giancarlo Giorgetti said. 'The government confirms its serious and responsible attitude toward public accounts, while at the same time supporting investments' that can help boost growth, he said in Rome on Wednesday. The minister confirmed that the deficit will continue to shrink, and will land at 3.3% of economic output this year.
Bloomberg
26-06-2025
- Business
- Bloomberg
France to Curb Spending as Government Sees Slippage From Plans
France's government said it will need to cut spending by an extra €5 billion ($5.9 billion) this year to meet its deficit reduction target after seeing some slippage from the initial budget plan. 'The additional effort decided today reflects a clear determination to act without delay to meet our targets for controlling public accounts and debt, with a view to bringing our deficit below 3% by 2029,' Finance Minister Eric Lombard said in a statement Thursday.
The Guardian
21-06-2025
- Business
- The Guardian
Ancient trees are shipped to the UK, then burned – using billions in ‘green' subsidies. Stop this madness now
How green is this? We pay billions of pounds to cut down ancient forests in the US and Canada, ship the wood across the Atlantic in diesel tankers, then burn it in a Yorkshire-based power station. Welcome to the scandal of Drax, where Britain's biggest polluter gets to play climate hero. The reality is that billions in public subsidies has enabled Drax to generate electricity by burning 300m trees. Now the government is trying to force through an extension that would grant Drax an estimated £1.8bn in public subsidies on top of the £11bn it has already pocketed, keeping this circus going until at least 2031. This isn't green energy. The mathematics alone should horrify anyone who cares about value for money or the environment. Burning wood creates 18% more CO2 emissions than coal. Even if you replant every tree Drax destroys, it takes up to a century for new growth to reabsorb the carbon released. We're supposed to reach net zero by 2050, not 2125. Yet through circus-trick accounting, all of Drax's massive emissions magically disappear from Britain's climate ledger. They've simply been wished away – counted as 'zero', while the company becomes our largest single contributor to climate breakdown. Extraordinarily, this scandal unites opposition across the political spectrum. From the Greens to Reform, from the Morning Star to the Daily Telegraph, there's rare consensus that Drax represents everything wrong with our approach to climate policy. The Labour-dominated public accounts committee condemned Drax as a 'white elephant' that's been allowed to 'mark its own homework' while claiming 'billions upon billions' in subsidies. A Lords committee agreed, saying parliament needs to see key documents before approving any more funding. I don't agree with Ed Miliband on everything – we clearly have different views on nuclear power. I respect the energy secretary's commitment to tackling climate crisis, and it is worth noting that the further subsidies are half of what was previously on offer for Drax. But that's exactly why continuing to subsidise Drax at all is so disappointing. When Miliband announced his plans to 'ramp up' biomass burning back in 2009, he was genuinely trying to find alternatives to fossil fuels. But 16 years on, this policy has gone badly astray. What was meant to be a bridge to renewable energy is actually making emissions worse. If, on Monday, the House of Lords votes to extend this unabated wood burning for another four years, what is to stop these subsidies being extended again and again? And why should the government deal with a firm as untrustworthy as Drax? Perhaps most damning is what Drax refuses to reveal. After the BBC's devastating Panorama investigation into the company's destruction of Canadian primary forests, Drax asked auditor KPMG to investigate, hoping for a clean bill of health. However, the evidence was so damning that the reports are still being hidden from the public. If Drax has nothing to hide, why not publish these reports? A former top Treasury official turned whistleblower accused it of deliberately concealing unsustainable practices to secure subsidies. The case, now settled, raises questions of dishonesty that should disqualify any company from public funding. The extra billions Drax is seeking could help build enough wind and solar capacity to power millions of homes. It could create permanent jobs in genuine renewable industries, not temporary employment destroying irreplaceable ecosystems. Every pound spent subsidising tree burning is a pound not invested in technologies that could actually deliver net zero. While other countries race ahead with wind, solar and battery storage, we're burning money on the most primitive fuel known to humanity. There's a huge loophole in the government's pledge to stop Drax burning trees from primary forest. Their restrictions on Drax only apply to subsidised electricity supplied to the grid. Drax wants to power private data centres but there is no plan that prevents it from destroying ancient forests to power 21st-century AI searches. That means Drax could be cutting down even more primary forests than it does today. MPs have lost trust in the government's ability to hold Drax to account – the criticism from parliamentary committees has been brutal. The environmental movement didn't fight to establish renewable energy so politicians could facilitate the burning of ancient forests that took millennia to grow. Real climate action means making hard choices, not hiding behind accounting tricks that make our emissions disappear on paper while making them worse in reality. It is time for Labour MPs to speak up; the fight for net zero is hard enough. More subsidies for Drax's wood burning in the name of sustainability is just more fuel on that fire. Dale Vince is a green energy industrialist and campaigner
