The Democratic Alliance (DA) in Mpumalanga takes note of the latest municipal audit outcomes.
According to the report, none of our municipalities received a disclaimed status during the 2022/ 2023 financial year. This is an improvement that we welcome.
However, to a greater extent, the AG has vindicated the DA, particularly on municipalities that are in financial distress and those that continue to flout the Municipal Finance Management Act (MFMA).
Below is some of the feedback that the AG gave on our municipalities:
- Two clean audits were obtained in both Ehlanzeni and Nkangala District Municipalities
- No clean audit in local government as Steve Tshwete regressed to an unqualified audit with findings
- 7 unqualified audits with findings
- 10 municipalities obtained a qualified audit
- Lekwa obtained an adverse audit (improving from a previous disclaimer)
Notably, for the past six years, Emalahleni, Govan Mbeki, Lekwa and the City of Mbombela were in a financial spiral as they battled with various aspects of revenue generation.
The report states that this inherent inability to generate revenue from the sale of services caused their debt to service providers like Eskom, Rand Water and the Department of Water and Sanitation to increase. Concerningly, the AG highlighted that 61% of billed revenue from the sale of services is deemed irrecoverable.
Once again, the AG has flagged out financial discrepancies in Lekwa, Emalahleni and Govan Mbeki. Msukaligwa becomes the latest municipality to be added onto this list.
We call on this provincial government to address issues of poor budgeting, weak financial management and ineffective revenue-collection in these municipalities.