Home News NC residents paying price for municipal incompetence – DA

NC residents paying price for municipal incompetence – DA

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Despite cash flow constraints, municipalities in the Northern Cape paid consultants more than R97 million for financial reporting.

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DA PROVINCIAL spokesperson for finance, Fawzia Rhoda, said the latest auditor-general’s report for the 2019/20 municipal financial year revealed that Northern Cape residents were still paying the price for municipal incompetence and poor revenue management.

She pointed out that 11 municipalities in the Province owed creditors more money than they owned.

“Emthanjeni Local Municipality agreed to pay performance bonuses in May instead of settling its outstanding Eskom account, resulting in load shedding,” Rhoda noted.

She added that despite cash flow constraints, municipalities in the Province paid consultants more than R97 million for financial reporting.

“The money, which could have gone a long way towards fixing potholes and burst pipes, was instead paid in addition to the R184 million spent on salaries for financial units.

“Renosterberg and Phokwane municipalities, which were both placed under administration, failed to submit financial statements. So we can draw our own conclusions about the successes of provincial financial recovery plans.”

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