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DA: Statement by Chris Hattingh, Democratic Alliance Provincial Leader, on Auditor-General's municipality reports (24/07/2012)

24th July 2012

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he 2010-2011 Auditor General’s Report on the audit outcomes of North West Local Government confirmed the continued regression on North West Municipalities.

It has become clear that the lack of political leadership within the NW ANC complicated by the bitter factional infighting continuous to have a devastating impact on NW local authorities leading to decreasing levels of delivery and diminishing accountability.

The AG’S call NW Provincial Departments to come to the assistance of the failing NW Municipalities will continue to be ineffective as both the Department of Finance as well as the Department for Local Government failed, in spite of increased budget amounts allocated towards the support of municipalities, to have any impact on the free falling municipalities.

Until the vicious NW ANC infighting, the continued faction driven deployment of incompetent cadres, the lack of consequences for maladministration, fruitless and wasteful expenditure, non-compliance with legislation is addressed the governance regression in NW will not be stopped.

A first step in a turn-around plan should be a no fear , no favour clean-up of the NW political leadership and NW administration– however this appear to be a bridge too far on the eve of Mangaung 2012 and for the political survival of the warlords within the NW ANC.



The AG reported that

No NW municipality showed any improvement in financial outcomes in comparison to prior years.

The province has not made any progress towards achieving a clean administration.

The general trend of municipalities and municipal entities is to not submit financial statements on time for audit purposes.

Only one municipality produced a service delivery report that satisfied all requirements and criteria

Municipalities are not taking service delivery reporting seriously and do not assign sufficient resources to ensure improvement.

Only 9 of the 24 municipalities (37%) could be audited by the AG due to the late or non-submission of financial statements by municipalities.

61% of NW municipal and municipal entities audits are still outstanding in comparison with 32% of the 2010 financial year.

Repeated non-compliance findings are not addressed

Key officials lack required skills and competencies

Intensified support and intervention required from provincial departments

Leadership has not set the correct tone through strong decisive direction and oversight is compromised by a lack of credible information.

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