Note to Broadcasters: Find linked soundbite in English by Freddy Sonakile MPL
The DA is appalled by the failure and inability of North West municipal finance departments to conduct the most basic duties, and their over reliance on costly financial consultants to do their job.
North West Finance MEC Motlalepule Rosho, in response to a DA written question, indicated that R635,172,986.00 was spent on the salaries of municipal finance staff and consultant fees at municipalities, excluding Ditsobotla Local Municipality which failed to submit financial statements for the 2020/21 financial year.
The City of Matlosana incurred the highest salary bill in the province at R79,056,069 yet it is unable to do its own financial statements. The Klerksdorp based municipality owes Eskom R1,5 billion and the Midvaal Water Board R1,1 billion. In July, the North West High Court awarded Eskom the right to attach the municipality’s bank account for failing to service its debt.
In June 2022, all 22 North West municipalities failed to obtain a single clean audit. According to the Auditor-General, Tsakane Maluleke, North West municipalities continued to record disclaimed audit opinions. Service delivery and overall performance has taken a knock while nearly half of all funds spent by municipalities were irregular.
The Auditor-General report indicated that the quality of financial statements submitted by all municipalities in North West remain a concern as recurring material misstatements were identified during the audit and subsequently corrected by management. The officials in finance units lack appropriate competencies to prepare credible financial statements resulting in over reliance on consultants.
This poor performance goes unabated while municipalities continue to plough monies into consultants, who also fail to deliver compliant financial statements and equip municipal staff with skills, so that they can continue receiving lucrative tenders.
We have today written to the Auditor-General to conduct a special audit checking value for money on finance staff and consultant fees and invoke her powers to recoup monies where there is none. Municipalities cannot continue to bleed funds unabated without consequences.