Council fails to account for R10m

THE auditor-general in Limpopo has uncovered a high level of corruption in the activities of the Lephalale municipality in Ellisras.

It was discovered that R10280108 had not been accounted for by the municipality.

The municipality's population stands at about 130000, while its budget for the current financial year stands at R195million.

The report, dated June 30 2008, found among others that the cost of property, plant and equipment amounting to R131,5 million differed by R2,5million from the cost of property, plant and equipment amounting to R129million disclosed in the previous year's statements.

The report, obtained by Sowetan, also shows that non-routine journals amounting to R985575, which were processed against property, plant and equipment, could not be substantiated against documentation.

It also discovered that buildings amounting to R13,5million were reflected in the financial statements at costs less accumulated depreciation.

This was, according to the findings, contrary to accounting policy, which states that land and buildings should be stated at re-valued amounts.

There is also an unexplained difference of R615518 between the employee cost and councillors' remuneration of R50,9million as per financial statements and the employee cost as per the payroll amounting to R51,5million.

Both the mayor and municipal manager Parks Sebatjane could not be reached for comment at the time of going to press yesterday.