The SRPA considers the latest Auditor General Report on the financial statements and performance of the Makhado Municipality a terrible disaster, revealing deep-seated rottenness.

The chairperson of the Soutpansberg Ratepayers Association, Mr Frans Prinsloo, compared the damning statements in the AG Report for the financial year ended 30 June 2009 to festering sores. He pointed to one of the “root causes that gave rise to the deficiencies in the system of internal control”, which led to the Auditor General’s disclaimer of opinion. “Integrity and ethical values have not been developed and are not understood to set the standard for financial reporting” (page 4 of the report).

“Integrity and ethical values are not even understood by them! What a terrifying statement! If any businessman would receive a report like this about his company, namely that integrity and ethical values are not even understood, it would be enough to make him suicidal,” Prinsloo said.

According to the SRPA, they were in full engagement with the Makhado Municipality during the whole period covered by the report, from July 1, 2008 to June 30, 2009.

“It seemed that we have achieved nothing. They made promises in 2008 that it would be an absolute priority to obtain a better AG Report. Now we have seen the report - there is no improvement; on the contrary, it is the worst AG report of the municipality in the last 15 years,” Prinsloo said.

The report states that reasonable steps were not taken to ensure that the municipality has and maintains effective, efficient and transparent systems of financial and risk management and internal control over the whole spectrum of municipal activities.

“One thing they did positively was their own performance management system and performance bonuses that they paid out to themselves,” Prinsloo said.

Prinsloo said that the dispute that the SRPA declared with the Makhado Municipality is definitely still in effect.

“Under these circumstances, we cannot contemplate to even begin talking about ending the dispute,” Prinsloo said.

During an executive meeting on August 5, the SRPA took a decision that they were left with no other option than to press criminal charges.