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Free State municipalities fail to submit documents to AG

───   LUCKY NKUYANE 12:45 Tue, 21 Jun 2022

Free State municipalities fail to submit documents to AG | News Article
AG Tsakani Maluleke PHOTO: GCIS

Three of the troubled Free State municipalities have failed to submit their financial statements for the audit by the Auditor-General (AG) for the current financial year.

The Trompsburg-based Kopanong, Qwaqwa-based Maluti-A-Phofung, and the Theunissen-based Masilonyana municipalities failed to furnish AG Tsakani Maluleke with the financial statements as per the requirement. These municipalities are amongst many municipalities in the province that are failing to provide essential services to residents who are at most frustrated and angry with them for such failures. Maluleke said the irregular spending has since grown with almost R2 billion at municipalities across the province.

The 2019/20 financial statements of Maluti-A-Phofung are also still outstanding.

“We reached out to key roleplayers in the accountability ecosystem (municipal mayors and speakers, as well as provincial premiers and members of the executive councils for finance and local government) to intervene in the non-submission of financial statements. We also informed the provincial legislatures, Parliament and the National Treasury. Our audit leadership further repeatedly engaged with the municipal managers and chief financial officers of these municipalities to encourage submission,” she adds.

The municipal managers (MM) of municipalities and the boards of the municipal entities were notified that the non-submission of the financial statements constitutes a material irregularity, as the delays in the accountability processes are causing substantial harm to these municipalities. Only six municipalities in the Free State managed to obtain unqualified opinions but with findings, and the rest of them obtained outstanding audits.

“The lack of transparency for the use of funds and the financial position of these municipalities should not be tolerated by councils, provincial and national leadership or oversight,” Tsakani further adds.

Maluleke last week told Members of Parliament (MPs) that three cash-strapped municipalities, including the Qwaqwa-based Maluti-A-Phofung, the Theunissen-based Masilonyana, and the Boshof-based Tokologo Local Municipalities failed to trace the money spent by the municipalities.

ALSO READ: Free State municipalities fail to trace taxpayers' money

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