The province, plagued by service delivery issues and millions lost in the VBS Mutual Bank scandal, is said to have spent a total of R180 million on consultants for financial reporting services - an act criticised by the Auditor-General as the cost far outweighs the benefit. 

The latest report tabled before the National Council of Provinces (NCOP) on Local Government Audit Outcomes for the 2018/19 financial year, indicates that municipalities have spent R1.26 billion on consultants to help them with their financial statements, yet only 14% improved their outcomes. 

Deputy Auditor-General, Tsakani Ratsela, says this is an indication that there is no value for money and that only 7% of the financial reporting consulting costs were as a result of vacancies in the financial units of municipalities.

The report presented by Ratsela, further indicates there is a systemic breakdown of financial control in municipalities in this province.

Whilst audit outcomes of the Bojanala District has slightly improved, those of the Dr Kenneth Kaunda District Municipality and Ngaka Modiri Molema District Municipality have regressed while the Dr Ruth Segomotsi Mompati District Municipality is stagnant.

Ratsela indicated that the use of consultants coupled with irregular expenditures in the province is a great concern. She highlighted that the province, together with the Free State, received no clean audits and require urgent intervention.

OFM News