While service delivery plummets, irregular expenditure at the local municipality has amassed to R260.4 million during the 2016/2017 financial year.
Add to that, unauthorised expenditure growing to R42.1 million and fruitless and wasteful expenditure increasing to R31.6 million, and it spells out one of the main reasons that Inkosi Langalibalele Local Municipality has been placed under Administration.
READ THE STORY HERE: Cogta MEC to place Inkosi Langalibalele Local Municipality under administration
These and other shocking revelations were made during a council meeting held on Thursday at the Multipurpose Centre in Wembezi.
The local municipality’s financial status was laid bare and those who were present heard of the growing debt that the municipality was liable for.
Councillors and residents were also told of the municipality’s spending habits, which saw more than 50 bodyguards being employed and the interest on the debt owed to Eskom standing at R1.1 million.
ALSO READ: ‘Wasteful expenditure’ questioned
With the municipality being in dire financial straits, Department of Cooperative Governance (COGTA) MEC Nomusa Dube-Ncube placed it under Administration.
During last week’s council meeting, the Administrator was introduced to council.
Thandolwethu Manda, a former Municipal Manager, will be taking over the reins from the financially sinking municipality, with an aim of turning it around.
According to the municipality’s Communication Unit, Mr Manda is tasked to come up with a turnaround strategy as well as investigate allegations from the community regarding affairs at the municipality.
He will be based at the civic building for six months and here is a list of some of the tasks he has been assigned:
1. Dealing with historical issues that have almost crippled the municipality’s financial resources.
2. Preparation and implementation of a recovery plan approved by the municipal council.
3. Ensure implementation of financial systems, policies and procedures including preparation and implementation of cost cutting measures.
4. Implement governance systems and procedures, including oversight over administration, including ratification of decisions taken by the municipal council, the Executive Committee, committees, Municipal Manager and Section 56 Managers in terms of delegated or original authority.
5. Ensure implementation of all projects undertaken by the municipality including unblocking projects that have stalled.
6. Ensure implementation of a remedial action plan dealing negative findings from the Auditor General.
7. Open and conclude negotiations with creditors of the municipality including applications of process envisaged in section 152 and 153 of the Municipal Finance Management Act 56 of 2003.
“We believe this will be sufficient time for our municipality to be financially stable again, we hope and believe that our stakeholders will fully support Mr Manda,” commented a representative from the Communications Unit.
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