CentralSAServices on brink of collapse at NW municipalities
─── LUCKY NKUYANE 13:05 Tue, 20 Jul 2021
The North West municipalities which are battling the financial constraints are also facing serious risk of a basic service delivery collapse.
This is according to the MEC for Finance, Motlalepula Rosho. She says the municipal audit outcomes show that over half of municipalities’ financial systems and governance and financial information are deficient. Rosho says if "continued tolerance for chronic and serious financial problems undermines the confidence of the public and of investors alike".
Meanwhile, according to the Auditor-General’s (AG) Tsakani Maluleke , 22 municipalities across the country could not provide evidence for most amounts and disclosures in financial statements.
Maluleke announced that seven municipalities, including Lekwa Teemane, Madibeng, Ratlou, and Maquassi Hills Local municipalities have a history of disclaimed audit opinions.
However, Rosho adds that these widespread weaknesses leave municipalities vulnerable to financial mismanagement which subsequently turns into a crisis where there are no remedial actions put in place.
She further adds that this also compromises the ability of the municipality to perform its basic functions and deliver services to residents and firms.