Mismanaging Funds Dries Municipal Coffers, Limpopo Municipalities Cautioned

OCTOBER 24, 2014

The Chairperson of the Select Committee on International Relations and Trade, Eddie Makue, has cautioned local and district municipalities in Limpopo on the dangers of mismanaging funding and having financial/audit reports that are qualified.

“Consecutive unclean audits simply mean what is due to the poor communities is not being delivered (up to standard) and thus money cannot be accounted for. Drastic action is required given the correlation between prudent expenditure, economic development and service delivery,” Makue said.

“Audits are a measures of delivery and accountability; if billions of rands cannot be accounted for, at local government level, where delivery should happen, then who is going to avail funding to the municipalities,” he said.

The Mayor of Musina Local Municipality, Tshiteneke Mathibe, informed the Select Committees on International Relations and Trade, and Economic Development that all local municipalities in the district had not achieved clean audits. The Committees are on an oversight visit to Limpopo, to assess challenges to economic development, and whether government projects benefitted the local communities.

Makue said that if sustainable economic development is to be realised, accountability needs to be prime.

“The country cannot allow a situation where resources earmarked for improving the lives of the poor people are squandered. If billions of rands cannot be accounted for at local government level where delivery ought to happen then the country is in trouble,” he said.

He called for strengthened relations among all three spheres of government in all facets of governance including financial management and stringent internal controls in institutions of government.