DA MPL, Joe McGluwa, says it is shocking that some of the biggest culprits with irregular expenditure, such as Rustenburg municipality with R983,5 million and Madibeng municipality with R561,9 million, are not even on the list.
McGluwa says they want to know what procedures were followed and if the National Council of Provinces (NCOP) and the Legislature played a role in the decision. North West Premier Job Mokgoro announced last week that eight North West municipalities have been put under administration.
They are the Kagisano-Molopo, Ramotshere Moiloa, Ditsobotla, Kgetlengrivier, Maquassi Hills, Naledi, Mahikeng, and the Ngaka Modiri Molema district municipality and would be under section 139(1)(b) of the constitution, and section 137 Municipal Finance Management Act with effect from 1 September.
The municipalities were put under administration following a diagnostics report on the state of municipalities.
The premier said the executive council received a detailed report from the department of local government and human settlements which provided a diagnosis of the state of municipalities in the province.
In May‚ Auditor-general Kimi Makwetu in his national municipal audit report for the 2016/17 financial year used Madibeng as an example of irregular expenditure in municipalities.
Despite the irregular expenditure of R562 million, fraudulent credit cards were also opened in the name of the Madibeng municipality and unauthorised monthly deductions were made from the municipality’s bank account. According to the AG report, these transactions were not identified by the municipality’s system of internal control, such as the monthly bank reconciliations
Makwetu said many municipalities’ irregular expenditure of prior years was not investigated at all or not properly investigated. This lack of investigations and consequences was the main driver of the increase in irregular expenditure, which then heightened the culture of non-compliance, in turn creating an environment susceptible to fraud and corruption.