Zoutnet

 
 

ADVERTISEMENT:

 

Ratepayers react negatively to AG report

 
The damning report of the Auditor General (AG) on the financial state of the Makhado Municipality underlined the demand of the Soutpansberg Ratepayers Association (SRPA) that the municipality be put under an administrator and that posts be filled with skilled people in consultation with the ratepayers.

Mr Frans Prinsloo, Chairperson of the SRPA, was very concerned about the fact that the municipality does not have effective and efficient systems of financial and risk management and internal control. “There are no efficient control activities implemented regarding unauthorised expenditure, property, plant and equipment, revenue and receivables, purchases and payables, cash and bank, grants, reserves and surplus, inventory, capital commitments or cash flow statement. This creates an environment susceptible to the pos-sibility of fraud,” Prinsloo said.

The SPRA further commented on the AG’s report by taking the past four years into consid-eration.

“For the years 2005 to 2008, the AG was unable to express an opinion on the financial statements, due to the fact that the Makhado Municipality could not give evidence supporting the amounts and disclosures in the financial statements … Credit control policies were never effectively implemented by management. In 2004, possible fraudulent transactions occurred regarding capital projects, with the result that forensic investi-gation was instituted by the AG,” states the SRPA

In the previous finan-cial year, unauthorized expenditure to an amount of R20.7 million was reported

“The only comment by the Financial Director was an unbelievable ‘I take note of the report’,” said Mr Herman Smith, spokesperson for the SRPA.

Smith said that in the latest report not even the cash and bank reconciliation could be reconciled to the bank balance; it was overstated by almost R6 million and irregular expenditure was not disclosed as required by the MFMA (Municipal Finance Management Act).

It is also reiterated that previous year’s external audit recommendations were not implemented. The Makhado Municipality also did not appoint or budget for a performance audit committee or develop or implement mechanisms, systems and processes as part of their internal auditing processes. The SRPA said that the financial director and acting municipal manager, Mr Hitler Maluleke, and the mayor, Cllr Mavhungu Luruli, failed in their financial responsibilities.

The SRPA, as well as the Chairpersons Association, offered assistance by professional people in all spheres of local government on several occasions, but that the municipality rejected the offers.

News - Date: 25 September 2009

Recent Articles

Search for a story:

 
 

ADVERTISEMENT

 

Linda van der Westhuizen

Linda van der Westhuizen has been with Zoutnet since 2001. She has a heart for God, people and their stories. Linda believes that every person is unique and has a special story to tell. It follows logically that human interest stories is her speciality. Linda finds working with people and their leaders in the economic, educational, spiritual and political arena very rewarding. “I have a special interest in what God is doing in our town, province and nation and what He wants us to become,” says Linda.

Email:

ADVERTISEMENT: