The Makhado Municipality appointed a new chief financial officer (CFO) in the person of a dynamic young woman who used to work at the office of the auditor general (AG).

The appointment of Johannesburg-born Ms Mikateko Palesa Makhubela (31) became effective on 1 October after the previous CFO, Mr Hitler Maluleke, left the municipality in March this year.

Makhubela matriculated in 1999 at Queen’s High School in Johannesburg and was a B Com Accounting graduate of the Midrand Graduate Institute. She is currently pursuing a B Compt Honours with UNISA. Her working experience started in 2004 when she joined the banking industry, and from January 2008 till September 2012, she was at the AG’s regional office in Johannesburg, from where she engaged with district and local government to ensure that the MFMA was complied to.

At a media interview on 8 October, Makhubela named a few measures to reach an eventual turnaround in the financial affairs of the municipality, which has not managed to obtain a so-called “clean audit” (unqualified) for many consecutive years.

“We have to reduce costs in terms of the operational budget. We have to ensure that we stick to budgets that are set, based on the approved projects and priority programme and to minimise costs of projects outside the approved budget for the year. The supply chain management needs to be strengthened. We have to restore healthy cash flows and pay our creditors,” Makhubela said. The municipality’s biggest creditor is Escom.

A turnaround would not be possible in under 24 months, the new CFO said. Makhubela stressed the importance of the general employees of the municipality to acquire a culture of accountability and submit their financial reporting in time. “We have policies, but we don’t always implement them,” Makhubela said. 

The DA provincial leader, Mr Jacques Smalle, said on 5 October that the Democratic Alliance was going to apply to put the Makhado Municipality under administration. The DA would make this application on the CoGHSTA report, based on the AG's findings of the last five years where the Makhado Municipality had a disclaimer of opinion from the AG in the financial years 2006/7, 2008/9, 2009/10 and 2010/11 and an adverse opinion (the worst) in 2007/8.

Regarding the possibility and viability of the municipality's being put under administration,  Makhubela said she would postpone commenting because she still needed to discuss the financial viability with senior management. “It is important to manage operational costs with regard to the time when grants are received. The municipal grants are received in November. A positive point is that PWC has compiled an asset register for the municipality,” Makhubela said. 

Prior to the advertisement and interviews for the post of CFO, community structures such as the Chairpersons Association and the Soutpansberg Ratepayers Association urged the municipality to appoint competent people in the important posts of municipal manager and CFO. Their request to sit in on the interview panel was denied.

During his introduction of the new CFO, the director of community services, Mr Elias Mugari, said that the process had been finalised and the best candidate had been appointed.  “She will be the right person and will be able to improve on the auditor general’s opinion of the financial matters of the municipality,” Mugari said.

Regarding her young age, Makhubela said that agewise she would have to manage culture versus organisational culture. “In our culture, we show respect for the older person. In organisational culture, we will have to change the mindset on financial matters of employees of all ages and post levels,” Makhubela said.