NW municipal finance shock

Posted in Latest News

Lentswe, Klerksdorp - A staggering 15% of the total irregular expenditure by municipalities in 2015/2016 financial year can be contributed to Municipalities in the North West Province.

This was revealed in a municipal audit report presented in a joint sitting of the National Council of Provinces and the Portfolio Committee on Cooperative Governance and Traditional Affairs on Tuesday 23 May.

The audit looked at the financial state of municipalities across the country‚ between July 31 2015 and June 30 2016.
The report showed that:
- There was a total of almost R17 billion in irregular expenditure in 2015/16, an increase of R5 billion over 2014/15;
- The North West contributed 15% of the total irregular expenditure;
- The municipalities failed to notice almost 40% of their own irregular expenditure;
- The worst contributor responsible for the irregular expenditure in 2015/16 was OR Tambo District (ANC governed), at R1.56 billion; and
- Over half of all unauthorised, irregular, fruitless and wasteful expenditure reported was not investigated at all.

The Democratic Alliance (DA) commented on Tuesday by saying that the ANC government had been directly responsible for financially crippling these municipalities through thieving and looting.

“This is money that should have been spent on delivering basic services to the people. Yet it has become abundantly clear that the ANC continues to put its self-interest above the needs of the people,” said DA MP responsible for Cogta Kevin Mileham.