MunicipalNews

Municipalities wasted millions in taxpayer’s money

The wasted money could have made a huge difference in service delivery.

The Randfontein Local Municipality together with the Westonaria Local Municipality have wasted and misspent millions of taxpayer rands during the 2011/ 2012 financial year.

This was revealed in the damning report by the Auditor General, which stated that these two municipalities are among others guilty of wasteful expenditure during the financial year 2011/2012.

What this means is that these two municipalities have splurged monies on unauthorized, irregular, fruitless and wasteful expenditure for the year under review.

According to the report, if wastage is measured in percentages, the Westonaria Local Municipality wasted a whopping 5.8 per cent of its budget while Randfontein Local Municipality wastage is 5.4 per cent.

Apart from this, the Randfontein Local Municipality has over some months been reluctant to release the controversial KMPG report to the public which states in detail how municipal money is spent.

According to DA Gauteng Local Government spokesperson Fred Nel, the wasted money could have made a huge difference in service delivery matters, thus bettering the lives of residents in the respected municipalities

“The impact of R3 billion taken out of potential municipal service delivery in Gauteng cannot be overstated.

“This huge loss points to a lack of internal control in Gauteng municipalities and is also indicative of their financial management problems,” says Nel.

He also warns that if this trend is not turned around very quickly, Gauteng may be faced with various municipalities who can no longer pay their bills due to money being wasted.

“I am afraid to say that if not turned around quickly, this type of a problem will then require the provincial and national government to bail out these municipalities.

‘This is a definite risk that requires deliberate mitigation,” says Nel.

In response to this, the DA has called on the Gauteng Local Government and housing MEC Ntombi Mekgwe to undertake an in depth discussion with the provincial legislature portfolio committee on local government and what the provincial government will do to turn the tide against wastage.

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