Questions over decision to hold back AG Report

Why was the latest report by the auditor-general not included in the agenda or tabled at this week’s Council meeting of the Makhado Municipality?

Although the report of the auditor general (AG)  was signed by the Polokwane office of the AGl on 30 November last year and released to the municipality, it was not included in the more-than-400-page agenda. “We will see if a supplement will be handed out at the meeting, as often happens,” DA Cllr Annette Kennealy said before the Council meeting that commenced at 14:00 on 31 January.

According to information obtained from the AG's Polokwane office, the latest AG report was to serve at this week’s Council meeting. To this effect, the municipality was asked whether the latest AG report would be discussed at this week’s Council meeting. This question and all other questions pertaining to the report were brushed aside with the answer “No further comment on this issue until it is considered and discussed by the Council,” from municipal spokesperson Mr Louis Bobodi.

The DA's local caucus leader, Cllr Brian du Plooy, confirmed after the Council meeting that the AG's report of 2010/11 had not served at the financial portfolio committee or the executive committee or at this week’s council meeting.

The DA expressed grave concern that the AG’s report for 2010/11 had been withheld from the executive committee and Council. “However, the mid-term internal audit committee's report has been released. On the face of that, the DA is worried about some aspects,” Kennealy said. “Only 14% of budgeted capital expenditure has been utilised. This raises question about the continued maintenance and upgrading of basic infrastructure,” Kennealy said.

Unspent conditional grants amounting to R36.2 million were another disturbing matter. Kennealy said that unspent conditional grants might be refunded to the national revenue fund unless the municipality could prove to Treasury the extent to which the funds had been committed.

"Why have these funds not been committed to vital infrastructure projects?” asks Kennealy.

Accurate reporting remains a problem. The income and expenditure report indicates revenue collection, such as rates and electricity, to be above the figures budgeted for collection.

“However, the audit committee states that, of the mid-term budgeted revenue of R212 million, only R151 million was collected. According to the committee, the municipality under-collected by R61 million. The R61 million does not appear in the income and expenditure report, although the income-and-expenditure report appears healthy,” Kennealy said.