Thuso Nemugumani, acting Municipal Manager of the Capricorn District (CDM) had to answer questions at a Municipal Public Accounts Committee (MPAC) hearing on the 2015/16 draft annual report and other financial issues last Friday before a committee that was not happy that the first document had been withdrawn and a second one sent to them after adjustments were made.
Material mistakes were identified in the CDM annual report and the Auditor-general allowed the municipality to make adjustments. The municipality also spent in excess of the approved budget and its financial statements were not prepared in accordance with the requirements of the Municipal Finance Management Act (MFMA). Unauthorised expenditure amounting to R66 348 786 was incurred by overspending the municipal infrastructure grant and irregular expenditure relating to the payments of a final retention certificate amounting to R1 185 648 was also incurred. Another unauthorised expenditure amounting to R56 210 723 was incurred and fruitless and wasteful expenditure of R607 085 in South African Revenue Services penalties and interest was incurred. The last amount started to accumulate from 2011.
Asset management was scrutinised and assets were not properly captured or classified.
The CDM also failed to submit a report on Aganang, although that municipality was only de-established on 10 August 2016, after the closure of the financial year. MPAC also wanted to know from the municipality what happened to the Youth and Women’s Parliament resolutions and back to school campaign and about bursaries awarded by the municipality. The Human Resources’ wellness programme overspent its budget by R568 482. Litigation cases were scrutinised. The municipality was chastised for reporting that the Lebowakgomo waste water works had been upgraded, but when MPAC visited the project it was found not to be true. The municipality said the project was stopped due to legal disputes. Amounts invested in the VBS Mutual Bank, which was later withdrawn, were questioned.
The municipality reported that they had managed to collect 10% of its water bill. National and provincial government owed the municipality R22 242 857 for electricity and households owed 20 985 314, while industrial debt was R2 465 947.
Story: NELIE ERASMUS