AG releases damning report on FS municipalities
15:31 Wed, 11 Jul 2018
AG releases damning report on FS municipalities | News Article
The financial health of Free State municipalities is on a decline. This, as no single municipality received a clean audit for the 2015/16 fiscal year.

According to the Auditor General’s provincial representative, Odwa Duda, audit outcomes for the past fiscal year have regressed, the state of good governance is on a decline and lack of accountability has become prevalent in many municipalities. 

Municipalities in the province have incurred a total of R675 million in irregular expenditure during the 2016/17 fiscal year alone. 

OFM News' Katleho Morapela reports that according to the AG report the main contributors to irregular expenditure were Matjhabeng, Tokologo and Letsemeng Local municipalities.

Irregular procurement processes, supply chain mismanagement, inability to collect revenue and late payments to Eskom and water boards are said to have contributed to most of the fruitless and wasteful expenditures, due to penalties and interests.

"Seven municipalities regressed while no auditees were able to improve," said Duda.

OFM News

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