This is according to the Auditor-General, Kimi Makwetu. Addressing the media on the 2017/18 audit outcomes, Makwetu said many of the municipalities - including those in the North West - suffered from their investments in the now liquidated bank. This, as the province currently has 15 municipalities under administration due to their financial distress, instability, and collapse of services. Makwetu said 13 municipalities in this province have received a disclaimer as the validity of their submitted financial statements is in question. He highlighted that consistent disregard of recommendations, lack of commitment, no action and no sense of urgency by accounting officers in many of the municipalities in the province are contributing factors to their poor financial state.

Makwetu added that municipalities in this province are in addition characterised by political instability, lack of accountability, and a breakdown of financial controls.

The Dr Ruth Segomotsi Mompati District Municipality, the Mahikeng Local Municipality, Madibeng Local Municipality, and Moretele Local Municipality are amongst some of the municipalities that have been under fire for investing over R300 million in the VBS Mutual Bank.

Overall, he said, accountability for financial and performance management continues to worsen in most municipalities countrywide and that there are a limited number of municipalities across the country that were able to achieve a clean audit status.

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