The Free State MEC for Cooperative Governance and Traditional Affairs (Cogta) has attributed the failure of some municipalities to submit their financial statements to the Auditor General (AG) primarily to capacity issues.

During a media briefing in the OR Tambo building in Bloemfontein, Saki Mokwena highlighted that many municipalities in the province, including Masilonyana and Nketoana, are struggling because of their inability to attract and retain qualified personnel. These municipalities are among the worst performers, failing to provide essential services to frustrated residents.

Masilonyana and Nketoana have consistently failed to meet the AG’s requirements. Nketoana received five consecutive disclaimer opinions in the last five audited financial years and six disclaimers over the past seven years, while Masilonyana has received a disclaimer audit for the eighth consecutive year.

‘We are working on an intervention to assist them further’

“These municipalities fall in that category where it’s not easy to attract qualified personnel, and the process to appoint them is often prolonged due to various problems,” said Mokwena. “In response, we sometimes send personnel to help bridge the gap, but we are working on an intervention to assist them further.”

AG Tsakani Maluleke acknowledged the challenges faced by these municipalities. She did, however, commend Matjhabeng for actively implementing her recommendations to improve financial management.

“In Matjhabeng, after the 2021 elections, a new council and mayor were elected. We pointed out several issues, including the overreliance on consultants for financial statement preparation. 

“The mayor took our recommendations seriously and appointed skilled personnel to handle the basics regularly. As a result, Matjhabeng’s audit opinion has improved from a disclaimer to an adverse and is now qualified,” Maluleke said.

AG Tsakani Maluleke tabling her report on 2022/23 municipal financial statements. Photo: Screenshot.

Mokwena cited Matjhabeng’s success as a model for other municipalities, emphasising that it demonstrates the impact of hiring skilled personnel. He noted, however, that municipalities like Nketoana, Masilonyane, and Kopanong have not been able to attract similar talent due to their financial difficulties.

The provincial government has dispatched officials, including chief financial officers, to various municipalities to provide support and address these capacity issues.

OFM News/Kekeletso Mosebetsi mvh