Millions of rands in irregular, unauthorised, fruitless and wasteful expenditure have been flagged across municipalities in the Northern Cape, the province of Premier Zamani Saul. However, investigations, recoveries and disciplinary action have often failed to follow.
The findings are contained in the final Joint Committee: MFMA Municipal Oversight Report, tabled before the Northern Cape Provincial Legislature in Kuruman on July 2.
The report was tabled under the authority of Speaker Newrene Claudine Klaaste and chairperson of chairpersons Mirriam Thenjiwe Kibi following oversight engagements conducted between May 18 and May 29.
The report examined municipal governance, financial sustainability, audit outcomes, service delivery performance and implementation of previous recommendations.
Consequence management a weak area
The committee found that consequence management remained one of the weakest areas of municipal governance.
“The joint committees found that consequence management remains one of the weakest areas of municipal governance,” the report states.
“Despite audit findings and identified irregularities, disciplinary processes are often delayed or not finalised within reasonable timeframes.”
The committee warned that “the absence of visible accountability contributes to recurring non-compliance and weakens public confidence in municipal institutions.”
At Dawid Kruiper Local Municipality, provincial Treasury reported approximately R74.5-million in unauthorised expenditure during the 2024/2025 financial year and a total irregular, fruitless and wasteful expenditure exposure of about R113.6-million.
UIF&W investigated, but concerns over outcomes
The municipality reported that historical UIF&W expenditure had been investigated, but the committee raised concerns about the outcomes of those investigations.
“Members expressed concern regarding the limited information provided regarding the outcomes of those investigations, amounts recovered, disciplinary actions taken and measures implemented to prevent recurrence.”
The report states that current-year matters “have not yet been investigated”.
“The committee is concerned that delays in investigating unauthorised, irregular, fruitless and wasteful expenditure may undermine accountability and weaken consequence management processes.”
Irregular expenditure a recurring problem
The committee found that irregular expenditure remained a recurring problem across municipalities.
“The persistence of irregular expenditure remains a concern across several municipalities,” the report states.
“Historical balances continue to affect municipal financial management and governance credibility.”
It further found that “investigations into irregular expenditure are often delayed and accountability measures are not always implemented consistently”.
At !Kheis Local Municipality, the report recorded unresolved material irregularities, including a payment into a fraudulent bank account.
“The municipality reported that three material irregularities had been identified,” the report states.
One of these “relates to payment into a fraudulent bank account”.
“The municipality reported that a case had been opened at the local police station, disciplinary proceedings had been initiated, and the Hawks investigation remained ongoing.”
Outstanding material irregularities
The committee raised concerns about unresolved material irregularities, weak internal controls and poor records management.
“The committee expressed serious concern regarding the outstanding material irregularities and emphasised the need for urgent implementation of corrective measures, particularly in relation to fraudulent bank account payments and record management deficiencies.”
The report also highlighted concerns about the lack of recoveries after investigations.
“Members questioned the basis upon which expenditure had been written off and remained concerned regarding the absence of recoveries despite the significant amounts involved.”
“The committee noted that the absence of recoveries and limited evidence of consequence management raise concerns regarding the effectiveness of accountability mechanisms within the municipality.”
The committee said municipalities needed to ensure that investigations into irregular, unauthorised, fruitless and wasteful expenditure were finalised and outcomes tabled before oversight structures.
The report recommends that outstanding investigations be concluded and that municipalities strengthen internal controls to prevent repeat findings.
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- Millions of rands in irregular, unauthorised, fruitless and wasteful expenditure have been flagged across municipalities in the Northern Cape, the province of Premier Zamani Saul.
- However, investigations, recoveries and disciplinary action have often failed to follow.
- The findings are contained in the final Joint Committee: MFMA Municipal Oversight Report, tabled before the Northern Cape Provincial Legislature in Kuruman on July 2.
- The report was tabled under the authority of Speaker Newrene Claudine Klaaste and chairperson of chairpersons Mirriam Thenjiwe Kibi following oversight engagements conducted between May 18 and May 29.
- The report examined municipal governance, financial sustainability, audit outcomes, service delivery performance and implementation of previous recommendations.
