Limpopo councils blow R1bn on consultants

Limpopo is the third big spender of millions paid to consultants after the KwaZulu-Natal and North West provinces.

The province spent more than R1.13 billion to consultants in the last financial year. Opposition parties have since unleashed a scathing attack on the ruling party, demanding an urgent intervention that could see the affected councils having good financial health going forward.

According to a consolidated report on the local government audit outcomes for the year 2021-2022, as released on 31 May 2023, Auditor-General (AG) Tsakane Maluleke expressed concerns over the continued reliance of municipalities on consultants to prepare their financial records.

NOW READ: DA Limpopo concerned over legal battle amongst departments

R1.13 billion

Limpopo, according to the AG’s report, spent R1.13 billion on financial reporting in the last financial year. This included R874.99 million on salaries for finance officials and R263.18 million for financial reporting by consultants.

Municipalities in the province, the report said had unauthorised expenditure of R2.57 billion and fruitless and wasteful expenditure of R160 million.

Five municipalities in the province were listed as the main culprits for the R1.68 billion in irregular expenditure. These are Mopani and Vhembe district municipalities and Polokwane, Mokgalakwena and Maruleng local municipalities.

Intervention

DA member of the Provincial Legislature in Limpopo Desiree van der Walt said the party would write to cooperative governance, human settlement and traditional affairs MEC Basikopo Makamu asking for an intervention that would rid councils off these spendings. In response, Makamu’s office said help was on the way.

“It should be noted that some of our municipalities have low revenue streams and inherited huge debts from bulk water and electricity purchases that hamper the funding of the budget.

Municipalities such as Modimolle-Mookgophong, Thabazimbi, Bela-Bela and Musina are now given an opportunity to apply to Eskom for debt relief.

This will alleviate their financial burden and increase viability,” said spokesperson Victor Magwedze.

ALSO READ: ‘This is like a stokvel’: Limpopo council’s dodgy secrets