He had failed to provide reasons why he should not be suspended, the department said in a statement.

"The letter of suspension was issued to Mojaki by the administrator, Khulu Nair, who is to appoint the acting municipal manager soon."

The district had received audit disclaimers for the past three years and incurred R1.3 billion in unauthorised and wasteful expenditure.

The Auditor General had recorded repeat findings and qualifications for the last three municipal audits, the department said.

"The key repeat finding was 'material misstatements' in annual financial statements for the past three municipal audits.

"The AG has also suspended the 2013/14 audit due to absence of finance staff to provide documents," it said.

On September 3, the North West executive committee decided to disband the district council in terms of section 139(1)(c) of the Constitution and place the Ngaka Modiri Molema district municipality under administration.

This decision was endorsed by the National Council of Provinces and the North West High Court, the department said.

By-elections will be held in the area next month to replace councillors.