The metro further failed to investigate unauthorised, irregular, fruitless, and wasteful expenditure amounting to R1.4 billion.

These figures were made known in the Auditor-General's (AG) report during the week. The report also indicated that the metro has received a qualified audit outcome with findings. 

The DA in the municipality is of the view that this outcome is a regression from the previous financial year. The DA’s Dulandi Leech made reference that the AG mentioned material matters of concern that required “significant and urgent intervention”. Material matters include the lack of supporting documents to substantiate actual achievements. In terms of other projects reported, the documentation differed substantially from the work which was done. Additionally, limited measures were put in place to improve the reporting processes.

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It is explained that the abovementioned might be a cause of the frequent changes within the Metro’s top structure, which has further resulted in the insecurity of other officials. “Mangaung’s management has failed to investigate unauthorised, irregular, fruitless, and wasteful expenditure amounting to R1.4 billion, R186 million, and R93 million – three times more than the previous financial year,” she explained. 

In addition, she said, no reasonable steps were taken to address the expenditure, followed by no disciplinary action leading to a culture of disregard for good governance.

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Leech further explained that another matter that remains a concern is the current liabilities and employee costs, which they believe are the two major areas resulting in a qualified report. “Substantiating documents relating to expenditure on overtime could not be presented. Furthermore, not all liabilities were recorded as a whole and it would seem as if the entire and true picture of the municipality’s financial state is not necessarily disclosed.” The AG indicated that the metro's current liabilities exceeded its total assets by R485 444 061 and stated material uncertainty exists that may cast significant doubt on the metro's ability to effectively continue.

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Another matter that concerns the DA is the municipality continues to fail to meet set targets for water, sewage and wastewater treatment works. Funds budgeted are simply reallocated to other projects or the funds are simply just not utilised. One other thing which the AG revealed is that the municipality incurred a loss of R1,8 billion in the financial year. The municipality’s average payment to suppliers is 165 days, far exceeding the national norm of 30 days, directly leading to a lack of service delivery. Water losses amounted to R406 million, 45% of the total water purchased. Electricity losses totalled an amount of R241 million, 10.9% of the total purchased.

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