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The state of municipal finances in the Northern Cape gives credence to
Minister Gordhan’s assessment that a third of municipalities are
failing. Municipal failures must be reversed through improved
financial management and better service delivery.

The money meant to serve communities is there, but it is being badly
misspent. Over the past three financial years, for example, fruitless
and wasteful expenditure incurred by Northern Cape municipalities
increased by 81%. At the Tsantsabane municipality alone, penalties of
R33 million was incurred due to the late submission of VAT returns.
Officials should have known when to submit the returns, as the tax
cycle is no secret to any South African. This example illustrates
perfectly what happens when cadre deployment is prioritised above
service delivery.

We need jobs for professionals, not jobs for pals. In the previous
financial year, contracts worth a collective R49.9 million were
awarded to councillors, municipal employees, other state officials and
their family members. The subsequent contracts are often not monitored
for performance.

Currently, the provincial government lacks the political will to
address the root causes of poor audit outcomes. Year in and year out,
the Auditor-General raises the same findings on poor supply chain
management, a lack of consequences for transgressions and bad
management of municipal finances. We are doomed to repeat these
findings, because the ANC does not take its incompetent comrades to
task.

The DA looks forward to being voted into power next year, so that we
can reverse the failures brought about by the ANC.

Issued by DA