Unexplained expenses amounting to R6.3million in the financials statements of the Makhado Municipality was one of the shocking findings of the auditor general that came to light early this year.

The report of the auditor general pertained to the 2005/6 financial statements of the municipality for the financial year ending June 2006.

Council’s failure to supply supporting documents to explain expenses totalling R6,3million was widely reported in the media. The Democratic Alliance at the time asked for the suspension of the municipal manager, Ms Faith Muthambi, and the then acting CFO (chief financial officer), Mr Thomas Nephawe. Since June this year, Ms Vutshilo Tshikhudo is manager: finances and acting CFO.

This week, an official explanation was given by the Makhado Municipality as to what had happened to the R6.3million that could not be accounted for.

It was found that some files had not been made available for audit purposes during the audit of 2005/6 documents.

"The said files have in the meantime been found, for which full documents and cheque numbers are on record," said the municipality.

"Apart from the files that were not available at the time, in 23 other items misstatements (under- or overstated amounts) were made, wrong payees were cited and incorrect cheque numbers were used – this caused further delays in accurate processing of data," it is further stated.

The 23 items account for part of the rest of the R6.3million.

"The other part of the R6.3million consists of direct deposits which were made into the municipality’s banking account without reference as to what these were for and had to be kept in a suspense account."

The municipal manager, Ms Faith Muthambi, said that the audit committee of Council considered a full written report that gave account of the R6.3million, took note of the report and was satisfied with the written explanation. Council’s audit committee comprises external members with expertise in the field and the meeting was held on Saturday, June 30.