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Central SA

NW municipality yet to adopt committee's VBS report

───   LUCKY NKUYANE 11:16 Thu, 22 Jul 2021

NW municipality yet to adopt committee's VBS report | News Article
PHOTO: municipalities.co.za

"The Dr Ruth Segomotsi Mompati district municipality in the North West, which illegally invested R150 million in the now defunct VBS Mutual Bank, is yet to adopt a report of the disciplinary committee."

This is according to the MEC for Finance, Motlalepula Rosho.

She says she is confident that after the adoption of this disciplinary report, action will be taken against those found to be on the wrong side of the law in that municipality which invested R150 million of public funds. Rosho says there must be consequence management and it’s something that they cannot shy away from.

She adds that despite actions that were taken against accounting officers, for instance against municipal managers in other municipalities such as Moretele and Mahikeng, the challenges are still there.

It has, however, been a busy week for Rosho and her team of managers after embarking on  a process of giving feedback to municipalities that are in financial distress. The feedback amongst others identified that 13 out of 22 municipalities are in serious financial crises and service delivery to the residents is on the brink of collapse.

“The municipal audit outcomes show that over half of municipalities’ financial systems, governance and financial information are deficient. These widespread weaknesses leave municipalities vulnerable to financial mismanagement, which subsequently turns into a crisis where there are no remedial actions put in place. Continued tolerance for chronic and serious financial problems undermines the confidence of the public and of investors alike. It also compromises the ability of the municipality to perform its basic functions and deliver services to residents and firms,” Rosho further added

Meanwhile, premier Job Mokgoro previously mentioned in his State of the Province Address (SOPA) that the dysfunctional state of the municipalities, some of which are still under administration, left much to be desired.


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