MUNICIPALITIES in Mpumalanga have wasted R1-billion of taxpayers money over the past financial year.
The wastage was revealed in a report by auditor-general Terence Nombembe on the province.
The A-G found that unauthorised, wasteful and fruitless expenditure amounted to a staggering R415-million, of which R342-million was only identified during the audit process.
In the report Nombembe remarked that severe deficiencies existed in the province's municipalities, He referred to the vacant chief financial officer position and the poor performance of existing CFOs as common denominator.
He also found that 15 of the 19 municipalities engaged the services of financial consultants to assist them in the preparation of their financial statements.
This lack of capacity cost taxpayers an unnecessary R35,6-million, and does not include salaries already earned by CFOs and their staff.
Nombembe also made specific mention of leadership not taking action against poor performing CFOs and other managers, and that municipal managers do not "adhere to key controls" and mayors "do not exercise effective oversight".
Cooperative governance and traditional affairs spokesperson Simphiwe Kunene conceded that failure by municipalities to fill senior posts was costing the state.
"Municipalities have already held interviews and are in the processes of filling all vacant positions with qualified people," he said.
Mpumalanga DA leader Anthony Benadie said Nombembe's findings proved that the ANC policy of cadre deployment and political patronage has ruined municipalities and service delivery throughout the province - at a cost of R1-billion.
"The accumulated wasteful expenditure could have provided 33000 RDP houses to the poorest of the poor, or to permanently solve Witbank's disastrous water supply three times over," said Benadie.
"It is due to failures of the above that supply chain management in municipalities has degenerated into a free-for-all, with officials not following the proper procedures in awarding contracts, or tendering for contracts themselves."
Benadie said his party had for long been vocal about the lack of skills and capacity in municipalities, and their general failure to generate their own income.
"The A-G has confirmed our position as material losses and ineffective debt collection amounted to R321,2-million," he said.
"Furthermore, municipalities' failures to maintain infrastructure and supply networks have resulted in distribution losses of R233.7-million.
"This clearly shows that municipalities are suffering from a desperate shortage of skills and capacity, and we believe that this should be addressed urgently."
A-G slates fruitless expense
MUNICIPALITIES in Mpumalanga have wasted R1-billion of taxpayers money over the past financial year.
The wastage was revealed in a report by auditor-general Terence Nombembe on the province.
The A-G found that unauthorised, wasteful and fruitless expenditure amounted to a staggering R415-million, of which R342-million was only identified during the audit process.
In the report Nombembe remarked that severe deficiencies existed in the province's municipalities, He referred to the vacant chief financial officer position and the poor performance of existing CFOs as common denominator.
He also found that 15 of the 19 municipalities engaged the services of financial consultants to assist them in the preparation of their financial statements.
This lack of capacity cost taxpayers an unnecessary R35,6-million, and does not include salaries already earned by CFOs and their staff.
Nombembe also made specific mention of leadership not taking action against poor performing CFOs and other managers, and that municipal managers do not "adhere to key controls" and mayors "do not exercise effective oversight".
Cooperative governance and traditional affairs spokesperson Simphiwe Kunene conceded that failure by municipalities to fill senior posts was costing the state.
"Municipalities have already held interviews and are in the processes of filling all vacant positions with qualified people," he said.
Mpumalanga DA leader Anthony Benadie said Nombembe's findings proved that the ANC policy of cadre deployment and political patronage has ruined municipalities and service delivery throughout the province - at a cost of R1-billion.
"The accumulated wasteful expenditure could have provided 33000 RDP houses to the poorest of the poor, or to permanently solve Witbank's disastrous water supply three times over," said Benadie.
"It is due to failures of the above that supply chain management in municipalities has degenerated into a free-for-all, with officials not following the proper procedures in awarding contracts, or tendering for contracts themselves."
Benadie said his party had for long been vocal about the lack of skills and capacity in municipalities, and their general failure to generate their own income.
"The A-G has confirmed our position as material losses and ineffective debt collection amounted to R321,2-million," he said.
"Furthermore, municipalities' failures to maintain infrastructure and supply networks have resulted in distribution losses of R233.7-million.
"This clearly shows that municipalities are suffering from a desperate shortage of skills and capacity, and we believe that this should be addressed urgently."
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