Sol Plaatje top contributor to unauthorised expenditure

SOL PLAATJE Municipality is the top contributor of unauthorised, fruitless, wasteful and irregular expenditure in the Northern Cape, with R198.2 million, followed by Joe Morolong Municipality with R167.1 million and Ga-Segonyana Municipality with R166.9 million.

The auditor-general audit outcomes for local municipalities for 2021/22 revealed that Northern Cape municipalities owed Eskom R2.1 billion and water boards R585.9 million, while water losses amounted to R188 million.

Unauthorised expenditure totals R1.1 billion, fruitless and wasteful expenditure amounts to R205.7 million and irregular expenditure comes to R1.1 billion.

The auditor-general’s report stated that municipalities in the Northern Cape spent R126.9 million on hiring consultants.

It was urged that steps be taken regarding repeated disclaimers that were awarded to !Kheis, Renosterberg, Joe Morolong and Kgatelopele municipalities.

Meanwhile, !Kheis Municipality has advised employees that salaries for May and June 2023 will be paid in July 2023 due to financial reasons.

The municipality has “humbly requested” all employees to assist in “steering them in a financially sound direction”.

South African Municipal Workers Union (Samwu) provincial secretary Lawrence Fennie stated that they would request the Department of Co-operative Governance, Human Settlements and Traditional Affairs to invoke section 139 at !Kheis Municipality.

“Funds are being mismanaged and there is maladministration due to the non-payment of provident funds to third parties. There appears to be a lack of political will to address problems at the municipality,” said Fennie.

He added that employees were unable to retire as their pensions had not been paid for some time.

“This is despite Samwu obtaining an order in the Labour Court in 2016 to compel !Kheis Municipality to pay employee deductions to the pension fund and pay municipal workers compensation equal to 11 months salary payments.”

The DA’s provincial spokesperson for Co-operative Governance, Human Settlements and Traditional Affairs, Michael Kaars, believed that steps taken to save municipalities in the Province were failing.

“The 2022 Municipal Financial Sustainability Index (MFSI) by Ratings Afrika has indicated that Northern Cape municipalities have operating deficits totalling R383.8 million and a liquidity shortfall of R1.2 billion.”

He added that this had resulted in budget deficits at Renosterberg, Thembelihle and Magareng municipalities, which were struggling to pay salaries.

“Emthanjeni, Magareng, Gamagara, Kamiesberg, Dawid Kruiper and Sol Plaatje are some of the municipalities experiencing water and sewage challenges due to collapsing infrastructure.”

Coghsta spokesperson Tshenolo Meruti said that placing a municipality under administration was the responsibility of Provincial Treasury.