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The Xhariep District Municipality was served with a summons in the case of Auditor General v/s Xhariep District Municipality, case number 1599/2023, for outstanding audit fees of R3 200 000. As per section 1888 of the Constitution Act 108 of 1996, the Auditor-General is responsible for auditing and reporting on the financial management, accounts, and financial statements of all municipalities. Section 23 (1) of the Public Audit Act 25 of 2004 authorizes the AG to calculate the audit fees, in consultation with the National Treasury's oversight mechanism.

Section 23 (2) of the Act states, an auditee must settle the account within 30 days of receiving the invoice. Section 23 (3) allows the AG to charge interest on any unpaid audit accounts after the prescribed period.

The District Municipality is unable to pay the outstanding audit fees due to its over-bloated salary bill, which consumes 104% of the district's budget.

The National and Provincial Treasury has provided partial help, but it is not sufficient to cover the outstanding fees. As a result, the ANC has decided to contest the summons in court, even though it is likely to be an unsuccessful endeavour. The council has also sought financial assistance from CoGTA, which has agreed to provide an amount of R50 000.00 towards legal fees.

The DA is opposed to contesting the summons and believes that the council should explore alternative routes to settle the bill, given the council's dire financial situation and its overstaffed organigram.

It is important for all municipalities to comply with the law and pay their audit fees to ensure accountability and transparency in the management of public funds. The AG plays a crucial role in ensuring good governance, and it is the responsibility of the municipality to settle its outstanding audit fees promptly.

The DA calls upon the council to prioritise financial prudence and explore alternative options to address its budgetary constraints, rather than contesting a legal summons for unpaid fees. The DA is committed to bringing change across the country and therefore urges all residents to register to vote in the 2024 National and Provincial Government elections.

Issued by Ian Riddle - DA Councillor Mohokare Local Municipality