Municipality fails AG test
R44 million loss as a result of electricity distribution losses.
Msukaligwa Local Municipality has yet again received a “disclaimer of opinion” from the Auditor-General (AG) after careful and detailed inspection through the municipal financial books.
The report of the AG has once again slammed municipality’s financial housekeeping as at 30 June 2015.
The disclaimer of opinion means that the AG was unable to obtain sufficient and appropriate audit evidence to provide basis for an audit opinion on the financial statements in their entirety, because accounting records were inadequate and this has been attributed to several reasons.
This lack of evidence was related to, among others municipal assets, revenue, debtors, cash flow and expenditures.
Of interest to all consumers, almost R44 million loss as a result of electricity distribution losses which represent 37% of total electricity purchased and a loss of more than R31 million due to water distribution losses which represent 65% of the total water purchased.
A detailed report will be published in the next edition of the Highvelder.
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