The five municipalities are among the North West institutions that have been listed in an Auditor-General (AG) report as needing urgent intervention.

According to the latest AG report, the financial health of North West municipalities remains a great concern, as no single municipality was able to obtain a clean audit for the 2018/19 financial year.

Over 50% of the municipalities remain under administration, with not much improvements.

Briefing the media in August, the AG’s North West head, Success Marota, said there is a systemic breakdown of financial control in the province as well as a lack of political will to implement consequence management measures.

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.

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.

Out of 22 municipalities, 13 are under administration due to their financial rut - resulting in failure to provide basic services.

Their inability to generate revenue, to fill critical positions, and to curb irregular expenditures are among some of the issues the NCOP is expected to address in the five municipalities.

OFM News