“How is it possible that Council officials have been allowed to get away with this flagrant abuse of taxpayers’ money for so long?” was the reaction by Soutpansberg Chamber of Commerce and Tourism with regard to the Auditor General’s report regarding the Makhado Municipality’s financial affairs.

The Chamber stated that reading the AG’s report “is an experience that leaves one incredulous.” They support the SRPA and affiliated organizations in their call for the Makhado Municipality to be placed under administration immediately.

“We want to go further and call for those responsible for the appalling state of our finances and service delivery to be fired and, if found to have enriched themselves with our money, should be criminally prosecuted,” the Chamber states.

“As the protest march illustrated in dramatic fashion, residents of this town have simply had enough. We need strong action … and we need it now!” says Wally Schultz of the Soutpansberg Chamber of Commerce.

The Chamber is concerned that there is only a handful of municipalities nationwide who can be considered well managed and that mismanagement is not dealt with appropriately.

“On the rare occasions that municipal officials guilty of fraud and mismanagement have been exposed their punishment has been a mere slap on the wrist and at worst, suspension, often on full salary, with perks.”

In the report, the Auditor General expressed an adverse opinion on the financial statements of the municipality. The financial statements do not represent fairly, in all material aspects, the financial position of the Makhado Municipality and its financial performance and cash flows for the year ending 30 June 2008. The report indicates that the municipality cannot do proper accounting and cannot provide sufficient supporting documentation for the accounting entries made with regard to tax money being spent. Non-compliance with applicable legislation and inefficient and ineffective accounting are hallmarks of the report.

The Makhado Municipality also responded on the report this week by merely stating: “The department of Local Government and Housing is busy helping us to address the report concerned.” No other details were supplied.