Another sorry state of affairs

The Auditor-General (AG) Kimi Makwetu yesterday tabled a report which painted a harrowing picture, that South African municipalities spent a whopping R28-billion irregularly. Although it has come to be expected, however it was still a shocking revelation to learn that the Eastern Cape had once again topped the list as the biggest contributor to the over-expenditure with its municipalities accounting for 48% of the total amount.

The AG scrutinised 257 municipalities and 21 municipal entities nationwide. Of these, these Eastern Cape accounts for 39 municipalities and 10 municipal entities.

Makwetu noted that not much has changed over the past few years in these municipalities. Of all our municipalities, only the small Ingquza Hill and Senqu municipalities came out with clean audits.

This is hardly a model to follow. It is a dismal showing – a sign that our province is far from developing.

The two municipalities have to be recommended for maintaining their clean books, despite their circumstances. They achieved this despite being the poorest municipalities without a rates base.

The disappointing municipalities were the bigger councils where every month, ratepayers pay for services – regardless of how poor the services are.

Irregular expenditure refers to money that was still used for the intended purpose but where the prescripts of the law were not followed.

Among the 10 municipalities listed as poorly performing, in terms of irregular spend over the past three years, were Nelson Mandela Metro (R8.1-billion); OR Tambo District Municipality (R3.08-billion) as well as Buffalo City Metro with R584-million.

Makwetu also singled out Mnquma Local Municipality, which is among the five municipalities in the province, to receive a disclaimer. He pointed to the total collapse of systems within Mnquma.

“We reported weaknesses in internal control risks that needed attention in local government by providing root causes for audit findings and recommendations to remedy underlying causes. There has been no significant positive change towards credible results; instead we are witnessing a reversal in audit outcomes,” the AG said of Mnquma.

This picture is likely to persist well into the new financial year as the state of Mnquma has deteriorated even further.

There is so much infighting within the council that the municipality is currently leaderless after ANC councillors defied Calata House, by electing Ndyebo Skelenge as mayor thus snubbing Thabo Matiwane who was favoured by the provincial leadership of the party. Frankly there is no hope for our municipalities. Asking the voters to use their votes to punish political parties does not seem to be yielding any positive results, especially in this province.

Perhaps the time has come for the debate around the collapse of provinces takes centre stage. Only then can municipalities be strengthened – when the focus moves away from the provinces and shifts to where it is most needed, in municipalities.