The JB Marks Local Municipality has incurred irregular expenditure amounting to R210.3 million, fruitless and wasteful expenditure of R78.8 million, and unauthorised expenditure of R255.6 million in the 2024/25 financial year.

The report was discussed on March 19 at a public MPAC meeting in the Madiba Banqueting Hall. Residents gathered to hear Municipal Manager Kgomotso Kumbe explain the municipality’s dire financial situation.

Shockingly, the R210m in irregular spending adds to a mountain of previous debt, bringing the total irregular bill to roughly R4.1b over recent years.

In the report, the Auditor-General stated that the municipality failed to prevent this waste. Most of the irregular spending happened because contracts were handed out without a fair bidding process. Meanwhile, millions were wasted on late payment fees to the electricity supplier, Eskom.

Furthermore, the Auditor-General noted that the council has failed to investigate these losses or hold anyone accountable, as required by law.

According to the annual report, the municipality is experiencing cash flow challenges due to a low debtors’ collection rate, which affects its ability to pay creditors on time.

See the full annual report here

The municipality is currently operating at a loss, with total spending (R2.58b) far outstripping its income (R2.43b). Officials blame several key issues for the struggle to provide basic service, including limited funding, ageing infrastructure, illegal connections and a lack of skilled personnel.

During the meeting Kumbe admitted, “We are not where we want to be.” He emphasised that an unqualified audit had been received. He added that basic service delivery is of utmost importance.

Residents also voiced their concerns on various matters.

Kumbe replied that he and various directorates in the municipality would engage with residents on the aforementioned matters in order to find viable solutions.

AfriForum also stated their concern over the figures in the annual report.

Alta Pretorius, District Coordinator of AfriForum’s Mooi River branch stated that the poor condition of Potchefstroom speaks volumes.

“No municipal manager or council can be proud of the current state of affairs. The standard excuse of staff shortages and slow processes is no longer acceptable, especially when basic service delivery, such as working street lights and maintenance of infrastructure, is clearly lacking.”

AfriForum has accordingly called on the Municipality to restore management practices and take effective action to improve service delivery. AfriForum has confirmed its willingness to work with the Municipality to find solutions but insists that political and administrative will is essential to bring about real change.