North West SCOPA calls Municipal Public Accounts and municipal managers to account on deteriorating Local Government audit outcomes

The North West Legislature Standing Committee on Provincial Public Accounts (SCOPA) chaired by Hon. Job Dliso has resolved to call a Municipal Public Accounts (MPACs) forum to account on deteriorating Local Government audit outcomes. This follows a briefing meeting with the Office of the Auditor - General over the 2019/20 Local Government Audit Outcomes for municipalities in the North West province.

Public Accounts Committee Chairperson, Hon. Dliso said the Committee is totally distressed that out of 22 municipalities in the province, 12 did not submit their annual financial statements for audit on the financial year under review. 'The situation is highly depressing as 55 percent of municipalities were not audited due to various reasons such as none and late submission of annual reports and annual financial statements amid using consultants that were paid lots of money. Amongst others is Ngaka Modiri Molema and Bojanala Districts as well as Ditsobotla, Kgetleng, Matlosana and Rustenburg local municipalities,' said Hon. Dliso.

According to the Acting Business Executive at the Office of the Auditor - General (North West Province), Mr. Mthokozisi Sibisi, there is total neglect of internal control disciplines resulting in financial and operational collapse, weakened governance and lack of accountability in municipalities in the province. 'There is no discipline to submit financial statements for auditing by legislated deadlines which resulted on failure to demonstrate accountability on spending of public funds. There has been a culture of usage of consultants for financial reporting which did not yield any results, and prevention of non-compliance on supply chain management legislation resulting on continuing increase of irregular expenditure,' said Mr. Sibisi.

He further said political leadership's tone resulted in provincial interventions that did not achieve desired impact. 'We should also note that continued usage of consultants in all the municipalities at an amount of R122,9 million did not yield any positive results,' said Mr. Sibisi.

He further said management was not responsive to internal audit recommendations; audit committees did not adequately follow up with management and that MPACs were not fully functional in most municipalities.

Mr. Sibisi said other factors that led to the deteriorating governance systems include political infightings which hindered oversight processes as well as provincial interventions such as Section 139(1)(b); political leadership which lacked willingness to effect consequences and drive accountability and inability to pay creditors timeously affecting the sustainability of suppliers. 'In the financial year under review, irregular expenditure increased to R4,1 billion; fruitless and wasteful expenditure at R420, 8 million and unauthorised expenditure at R3,9 billion and there was no consequence management. The increase is due to lack of basic daily internal controls and prior year balances are not adequately dealt with due to lack of technical capacity and committees lacking resources and expertise to investigate,' said Mr. Sibisi.

Hon Job Dliso also said the Public Accounts Committee has decided to also compel all consultants to come and account on their impact on assisting municipalities. 'The honeymoon is over as we are going to ensure that funds follow functions and there will be accountability. The audit outcomes do not inspire public confidence as municipalities continue to implement unfunded budget. Only two municipalities out of 22 improved whilst 8 remained stagnant and 12 with outstanding audit because of late submission of their annual financial statements,' said Hon. Dliso.

He said municipalities are unable to pay creditors especially water boards and Eskom, and there is total collapse of infrastructure and lack of consequence management. 'We will further extend the invite to Speakers, Mayors, Municipal Managers to account on the collapse of municipalities and both departments to brief us on ythe impact of their interventions. We condemn the shifting of responsibilities by the Accounting Officers to MPACs which they deliberately sabotage by not providing support in a form of tools of trade and human resource to can effectively conduct their oversight role,' said Hon. Dliso.

For media enquiries or to arrange interviews:
Namhla Luhabe - Chairperson of the Committee
Cell: 0795270628

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