Note to editors: Please find attached English and Sesotho soundbites by Tim Mpakathe.
The recently released Auditor General’s report on Mantsopa Local Municipality unveils a grim reality that demands immediate attention and corrective measures. The findings reveal a disturbing trend, with little improvement since the previous audit.
Mantsopa Local Municipality has once again received a qualified audit opinion, particularly in the 11 paragraphs dedicated to annual financial statements, as disclosed in the AG report for the 2022/2023 financial year.
This unsettling report echoes the horror of its predecessor from the 2020/2021 financial year, where the ANC-led municipality failed to submit the necessary annual financial statements for auditing. Previously, the ANC-led municipality had failed to submit the annual financial statements of 2021/2022 on time for auditing for the previous financial year, this has never been tabled.
The Democratic Alliance (DA) notes with concern that the audited financial statements for 2022–2023 were not included in the agenda, hindering councillors from thoroughly examining and engaging with the AG report. Despite this, the DA prioritised compliance and allowed the AG to proceed with the report.
The municipality’s financial mismanagement is glaring, with irregular expenditure amounting to R5,021,275 due to contraventions of supply chain management requirements. Unauthorised expenditure has reached a staggering R35,206,962, attributed by the AG to conditional grants being diverted from their intended purpose.
While the AG acknowledged an improvement in the asset register during the presentation, the municipality’s failure to account for property, plant, and equipment due to material differences between the fixed asset register and supporting evidence remains a concerning issue.
Liabilities surpass assets by a concerning R560 million, nearly double the Mantsopa actual budget. Creditors are not settled within the stipulated 30 days as per the Municipal Finance Management Act (MFMA). Despite having a payment plan in place, the Eskom debt continues to escalate, raising concerns about possible defaults on the agreement. Additionally, both Leeuwwater and Bloemwater credit has surged from R2,204,007 in 2022 to R3,725,496 as of 30 June 2023.
This financial mismanagement directly impacts the community, jeopardising essential services and potentially leading to increased financial strain on residents.
We call for immediate corrective actions to address the financial mismanagement at Mantsopa Local Municipality. We urge residents to register to vote in the upcoming 2024 National and Provincial Government elections, as we strive to bring accountability and transparency to local governance.