The Northern Cape auditor-general, Charles Baloyi, addressed a council meeting this week where he voiced concern that the municipality owes Eskom around R1 billion, while irregular expenditure amounted to R142 million and fruitless and wasteful expenditure stood at R100 million
SOL PLAATJE Municipality is in a “financial crisis” where it is unable to collect revenue or pay its debts.
The Northern Cape Auditor-General, Charles Baloyi, addressed a council meeting this week where he voiced concern that the municipality owes Eskom around R1 billion while irregular expenditure amounted to R142 million and fruitless and wasteful expenditure stood at R100 million.
“Council is not investigating irregular, fruitless and wasteful expenditure and there are no consequences for transgressors. There are compliance issues and the use of deviations without following processes. Procurement and supply chain management processes must be check-listed. R142 million in deviations is a lot,” said Baloyi.
He stated that customers were not being billed for water and electricity usage while there were several illegal connections and distribution losses.
“The interest on the Eskom account is escalating, resulting in more debt as service providers are supposed to be paid within 30 days.”
He raised eyebrows over non-compliance with supply chain management processes.
“Sol Plaatje Municipality was flagged by the premier, but we have not seen any improvement in audit outcomes. There is no accountability and action plans are not implemented.”
Baloyi added that assets were over-valued and were not properly assessed or correctly classified, while indigents who were allocated free basic services could not be verified.
He indicated that the municipal manager had yet to formally respond to the environmental hazards caused by the malfunctioning Gogga pump station.
“People are affected by the sewage that is also affecting the grazing land of animals.”
He pointed out that a service provider had been paid R2.2 million although no work had been completed and no effort was taken to recover the money.
ANC councillor Eucia Matika pointed out that Kapa Koni Investments was the sole service provider contracted to work on Gogga pump station.
“Which company got a R2.2 million tender that resulted in irregular expenditure? The accounting officer used to be a partner of Kapa Koni before he de-registered.”
Councillors requested to be provided with copies of all versions of the auditor-general’s report that had not been distributed at the time of the council meeting on December 12.
ANC councillor Robert Kok questioned why a paragraph was removed from the auditor-general’s report, while ANC councillor Frikkie Banda found it “worrisome” that the report was altered without council’s knowledge.
ANC councillor Casper Rammutle believed the auditor-general’s report had been tampered with.
DA councillor Chris Phiri enquired if the auditor-general had reported any irregularities to the law enforcement agencies.
