The Office of the Auditor-General has slammed Gauteng’s Sedibeng and West Rand district municipalities. Picture: Henk Kruger / Independent Newspapers
AUDITOR-General Tsakani Maluleke has issued a strong rebuke to the Sedibeng and West Rand district municipalities in Gauteng for squandering billions of rand without accountability.
In her report, Maluleke found a deficit of about R18.2 million in Sedibeng district municipality.
”... As of that date, the current liabilities exceeded assets by R131m. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the district municipality’s ability to continue as a going concern,” the report states.
Maluleke said she would not determine how planned indicators would be measured and what evidence would be needed to support the achievement.
”Evidence was not provided to confirm that processes had been established to consistently measure and reliably report on the indicators,” reads the A-G’s report.
She established that this was due to a lack of measurement definitions and processes.
”Consequently, I could not confirm the reliability of the reported achievements,” Maluleke added.
In her West Rand report, the A-G found that the municipality had an accumulated deficit of R112m and its total liabilities also exceeded its assets by R112m.
”The municipality is presently implementing a financial recovery plan with seven strategies and reports on progress to the National Treasury, National Department of Cooperative Governance and Traditional Affairs (CoGTA), Gauteng Provincial Treasury and Gauteng Provincial CoGTA on a monthly basis.
“These events and conditions indicate that a material uncertainty exists that may cast significant doubt on the municipality’s ability to continue as a going concern,” Maluleke warned.
Earlier this week, DA member of the Gauteng legislature Ina Cilliers said Maluleke’s reports on the Merafong City local municipality confirmed its systemic financial mismanagement that has plagued it.
According to the A-G report, Merafong City recorded an alarming R818m in irregular expenditure, with no steps to investigate or resolve the financial discrepancies.
”Additionally, R1.03m was spent on consultants for work that was never completed — a flagrant misuse of resources that must be addressed immediately.
“This mismanagement has also resulted in significant unauthorised expenditures, further straining the municipality’s precarious financial position,” Cilliers added.
She promised that A DA-led Gauteng provincial government will set up an audit response team dedicated to addressing the findings by the A-G.
”Furthermore, this team will also create a detailed plan that includes timelines to address the current problems faced by Merafong and provide regular progress reports to the residents,” Cilliers claimed.
loyiso.sidimba@inl.co.za
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