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Auditor General Issues damning report on Dihlabeng’ financial status

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Auditor General Issues damning report on Dihlabeng’ financial status

1st February 2023

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The Auditor-General yesterday presented the audit findings for the 2021/22 financial year. This confirmed the DA's sentiment that the Dihlabeng Local Municipality is a sinking ship lacking in political and administrative accountability.

The community of Dihlabeng is experiencing a constant interruption of water supply, electricity shedding outside of the Eskom loadshedding schedule, and service delivery challenges that further compromises the well-being of the municipality.

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Therefore, it is worrying to see that the deteriorating financial management and lack of consequence management have led to, among others, the following:

The municipality incurs a net loss of R 179 million, with the liabilities exceeding assets by R 710 million.

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Eskom debt of R726 million and Department of Water Affairs' debt of R58 million.

Unauthorised expenditure amounted to R276 107 670 due to overspending of the budget.

Irregular expenditure amounted to R138 970 108 due to contravention of supply chain management procedures.

Fruitless and wasteful expenditure amounted to R41 114 932 due to interest on late payments.

No investigations have been carried out by the municipality to find the guilty parties and hold them accountable. The Municipal Public Accounts Committee (MPAC) is a key body in the municipality meant to perform oversight over the executive and ensure good governance is not functioning.

It is indeed evident that for the municipality to recover, we need a new accountable government that applies consequence management. Political office bearers with the political will to do what is required of them to deliver services and account to the community at large.

The DA will ensure that the Municipal Public Accounts Committee receives priority to perform its duty of oversight over the executive as soon as possible and for investigations to start immediately.

Where unauthorised, irregular and wasteful expenditure occurred, we will seek assistance from our provincial leaders and the interested parties to get those complicit in court.

For the municipality to rid itself of the rot, our people need to vote for a proven, accountable government led by the DA.

It starts in the 2024 national and provincial elections, in which voters will have an opportunity to vote for change.

 

Issued by Eric T Motloung - DA Councillor Dihlabeng Local Municipality Finance Portfolio Member

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