Of the 13 that are currently under administration only one municipality – the Kagisano-Molopo Local Municipality – improved. 

The AG’s North West head, Success Marota, briefing the media on Tuesday, said there is a systemic breakdown of financial control in the province with a lack of political will to implement consequences. He said of the 17 municipalities audited, none had a desirable outcome while five failed to submit their financial statements. Marota highlighted municipalities in the province are not only continuing to bear the brunt of their investment in the now liquidated VBS Mutual Bank, but that they are incurring high fruitless and wasteful expenditure.

Fruitless and wasteful expenditure by municipalities in the province has almost doubled to R280.2 million, compared to the R114.4 million in the 2017/18 fiscal year. This, in addition to unauthorised expenditure recorded at R1.9 billion.

Marota says this expenditure is amongst the reasons as to why municipalities in the province are in a financially distressed position.

Out of 22 municipalities, 13 are under administration due to their financial rut resulting in failure to provide basic services. Municipalities in the province are unable to generate adequate revenue. Despite having generated revenue of R10.3 billion, 47% have incurred a deficit.

Municipalities in the province have for years drawn controversy over their VBS Mutual Bank Investment, with the AG highlighting that a loss of R556.2 million continues to cripple them.

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