AG’s North West head, Success Marota, says they have noted with great concern how a large percentage of costs are salaries and wages, leaving little or no resources for service delivery. Marota says districts are overspending their budgets, lack financial controls, and a culture of accountability. The cash-strapped Ngaka Modiri Molema Municipality is amongst those spending large percentages of its equitable share to pay salaries due to positions that were not budgeted for. Marota says this is a clear indication of how local government in the North West is grappling to carry out its obligations.

The Dr Ruth Segomotsi Mompati District Municipality is another district municipality criticised for its R150.7 million investment in the now liquidated VBS Mutual Bank.

Marota says the Dr Ruth Segomotsi Mompati District Municipality had to enter into a repayment agreement with National Treasury to repay the grants, instead of withholding the entire amount from the equitable share.

“This resulted in a significant increase in outstanding payables and the unspent conditional grants in the current year as a result of these cash-flow constraints. Dr Ruth had to significantly scale back its rural sanitation programme as a result of a lack of funding”.

Marato says salaries are a major expense at 39% of their revenue base and that this is a clear indication that the district is not using its limited resources effectively.

Whilst the Bojanala Platinum District is in a similar position, Marato adds that the Dr Kenneth Kaunda District is slightly demonstrating the willingness to implement recommendations by the AG. He says while there is still a long way to go for this district they have at least limited the use of consultants, and implemented some financial control measures as compared to other municipalities.

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