AG Tsakani Maluleke says in total ten municipalities across the country, including a few in the Free State, were spot-checked or sampled in order to properly process, amongst others, irregular expenditure. She says these three cash-strapped municipalities include the Qwaqwa-based Maluti-A-Phofung, the Theunissen-based Masilonyana, and the Boshof-based Tokologo Local Municipalities. 

The other three municipalities that failed to track the trail of the money, includes one in the North West, and also one in the Northern Cape, and one in Mpumalanga.

This means that five of the six troubled municipalities are in Central South Africa, out of the spot-checked or sampled total of ten municipalities across the country. Maluleke says the office has since reported the matter with the Financial Intelligence Centre (FIC), which is a national centre for the gathering, analysis, and dissemination of financial intelligence.

The four municipalities which were able to account for their taxpayers' money, include the Joe Morolong Municipality in the Northern Cape and the Bloemhof-based Lekwe Teemane Municipality in the North West.

On Tuesday morning, Maluleke told MPs during a joint meeting of three Standing Committees - the Standing Committee on the Auditor-General, the Standing Committee on Public Accounts, and the Select Committee on Appropriations - that many municipalities across the country continue to adopt unfunded budgets and spend money which they don’t have.

OFM News previously reported that eleven Free State municipalities had approached the provincial departments of Cooperative Governance (Cogta) and Treasury for a bailout after they failed to pay the salaries of workers for the month of May, and counting.

ALSO READ: Eleven Free State municipalities beg for bailout

The troubled Mangaung Municipality also recently came under serious scrutiny after it has been alleged that it failed to adopt a budget due to the non-compliance with amongst others the Municipal Finance Management Act (MFMA).

ALSO READ: Mangaung Metro reportedly fails to adopt multi-million rand budget

The metro also adopted the unfunded budget for the years 2018/19 and 2019/20.

The Metro has since remained silent on serious allegations that R500 000 have gone missing from the municipal purse.

ALSO READ: Mangaung mum on missing R500k

The full AG’s report is expected to be published by this afternoon.

OFM News