ANC and DA clash over R9bn in wasteful expenditure by Limpopo municipalities
· Citizen
A war of words has erupted between the DA and ANC in Limpopo after the province’s 10 municipalities blew more than R9 billion in unauthorised, irregular and wasteful expenditure during the previous financial year.
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This led to the DA in Limpopo submitting questions to the MEC for cooperative governance, human settlement and traditional affairs (Coghsta), Rogers Basikopo Makamu to explain this massive expenditure.
“It is clear that the mandatory municipal Section 71 reports by the accounting officer and the quarterly Section 52(d) reports by mayors to set out the state of financial affairs of their municipalities, and which further act as an early warning system, is not worth the paper it is written on, either because of a lack of transparency on municipal balance sheets, or the lack of scrutiny by Makamu’s department, or both,” DA Limpopo chairperson, Lindy Wilson said in a statement on Friday.
Financial instability in Limpopo’s municipalities
Wilson said a recent report from the Limpopo Treasury paints a bleak picture of the lack of financial stability within Limpopo’s municipalities and the imminent danger of financial collapse.
“Eleven of our 27 municipalities have unfunded budgets with Makhado and Fetakgomo-Tubatse municipalities’ budget found to be unfunded after the adjustment process, which is indicative of the ANC politicians’ demagoguery. The unfunded municipalities are Greater Letaba, Ba-Phalaborwa, Mopani district, Musina, Makhado, Vhembe district, Thabazimbi, Mogalakwena, Modimolle-Mookgopong, Waterberg district and Fetakgomo-Tubatse,” explained Wilson.
She said R9.72 billion of unauthorised, irregular and wasteful expenditure was incurred by 10 municipalities.
“It is concerning that the embattled Mopani district municipality accounts for 39.7% of the UIFWE in the province in the amount of R3.86 billion. Despite several requests by the DA, the Limpopo ANC government is yet to place Mopani district under administration. This despite the district’s increasing inability to provide water and sanitation to its nearly 1.2 million populace.”
Wilson, who is also a member of the Limpopo provincial legislature in Lebowakgomo, said Thabazimbi municipality, still fraught by ANC factionalism, incurred unauthorised, irregular and wasteful expenditure of R1.57 billion, followed by Modimolle-Mookgopong with R1.25 billion.
The DA Limpopo chairperson said her party will request details of interventions by the department and the municipalities to address the Auditor General’s negative audit findings.
“We will further recommend to the portfolio committee for Coghsta to engage with the portfolio committee for Treasury to effect a collaboration to revive sound financial governance in our municipalities,” she said.
Municipalities told to improve funding
In response, Makamu’s department said it will, together with the Limpopo Provincial Treasury, assist municipalities in the development and implications of revenue enhancement strategies and financial recovery plans.
“Municipalities were advised to develop budget funding plans that will assist in improving the funding position of their budgets,” said departmental spokesperson Tsakani Baloyi on Friday.
Baloyi said the office of the Auditor General of South Africa (AGSA) indicated that one of the reasons for the irregular expenditure is legacy contracts that have not come to an end yet. She said municipalities also face cash-flow constraints due to excessive interest and penalties imposed by creditors such as Eskom.
“Findings on unauthorised expenditure are mainly due to municipalities with unfunded budgets (low revenue collection or limited revenue streams).”