Ditsobotla Municipality is facing heavy criticism for its failure to submit the annual financial statements (AFS) for the 2022/23 audit period.

The cash-strapped municipality, headquartered in Lichtenburg, has become a focal point of concern due to its ongoing financial struggles, which recently prompted an urgent intervention by the North West provincial government.

During the State of the Province Address debate in March 2024, Ditsobotla was highlighted among several struggling municipalities in the North West province. Auditor-General Tsakani Maluleke revealed in her latest report that Ditsobotla was one of the municipalities that failed to submit its AFS for the 2022/23 audit period, raising serious concerns about its accountability.

In response, the Standing Committee on Provincial Public Accounts (Scopa), chaired by Smuts Matshe, has demanded that the municipality account for its failure to comply with its legal obligations. Matshe called the conduct of Ditsobotla’s management and council “unlawful, embarrassing, and intolerable”.

“It’s … unacceptable for an institution mandated to provide services to communities to undermine the work of the Auditor-General, and simply ignore its obligations to generate and submit annual financial statements as well as other performance documents for the audit,” Matshe said.

The municipality has also failed to submit annual reports for previous years. Matshe emphasised that Scopa had directed the municipality to submit a detailed report explaining its failure to prepare for the 2022/23 audit season.

‘The municipality should submit a report on the intervention plan’

The report is expected to provide acceptable reasons for ignoring its legal and moral obligations during the audit period, an explanation for the lack of immediate reporting of noncompliance to Scopa and other authorities, identification of the accounting officer responsible at the time of the audit period, and corrective measures taken to address the failure to submit the necessary documents.

“Furthermore, the municipality should submit a report on the intervention plan or remedial measures, including a timetable, to ensure the submission of all outstanding annual financial statements and other relevant documents,” Matshe added.

The committee would invite the municipality to provide a formal explanation for its noncompliance and failure to adhere to the audit process in due course.

OFM News/Kekeletso Mosebetsi cg