Auditor-General Tsakani Maluleke has discovered that inadequate oversight and slow implementation of corrective measures continue to overshadow the audit outcomes of most municipalities in Limpopo.
In the 2022/23 audit findings, not one municipality received a clean audit.
While 18 municipalities received qualified audits with findings, Modimolle-Mookgophong received an adverse audit opinion.
It is estimated that 19% of municipalities in the province cannot meet their obligations. Nine municipalities approved unfunded budgets. These contributed to the total of R2.77-billion in unauthorised expenditure.
Fruitless and wasteful expenditure
“At 22 municipalities, fruitless and wasteful expenditure totalling R230,58-million placed more pressure on their financial health. While the amounts owed to Eskom and the water boards remained high. These are at a combined R2,73-billion,” Maluleke said.
Despite overreliance on consultants at an increased cost of 6% to R279.87-million, audit outcomes remained largely unchanged.
“Water and wastewater infrastructure continues to deteriorate. And incomplete projects exacerbate the lack of water supply to desperate communities. Sekhukhune district municipality underspent its municipal infrastructure grant. …This grant allocated for water projects was underspent by R232, 96-million. It represents 49% of the grant allocationr54,” said Maluleke.
Poor maintenance practices remained a concern
She said poor maintenance practices remained a concern as most municipalities spent less than the National Treasury norm of 8% of the value of the assets on repair and maintenance.
“Poor performance, lack of financial controls and derelict infrastructure hamper consistent and sustainable delivery of services and infrastructure. This in basic services like water, sanitation, waste management, electricity, housing and roads. Despite budgeted funds being spent,” said Maluleke.
On October 4, the provincial executive committee took a decision to place the dysfunctional Thabazimbi local municipality under administration.
The council was dissolved. And the Independent Electoral Commission indicated that the by-elections for all the wards will take place in December.
Thabazimbi is one of many municipalities in the province that require urgent intervention.
The DA in the province said it has appealed to Premier Phophi Ramathuba to intervene. This by implementing steps in terms of Section 154(1) or Section 139 of The Constitution. In order to increase support to strengthen capacity of all municipalities in distress. The provincial Co-operative Governance, Human Settlements and Traditional Affairs (CoGHSTA) has been vocal about these.
Calls for CoGHSTA to intervene
Lindy Wilson, the DA’s provincial spokeswoman for CoGHSTA, explained the matter. She said: “We call on the premier and the MEC for COGHSTA, Basikopo Makamu, to report on provincial interventions. The MEC must report on all municipalities in distress and increase COGHTSA’s oversight of project delivery. This in order to improve the lives of the citizens of the province,” she said.
Attempts to get comment from the CoGHSTA spokesperson, Tsakani Baloyi, were unsuccessful.
