The report by the Auditor-General (AG) for the 2021/2022 financial year shows that Mpumalanga’s municipalities have effectively been run even further into the ground.
It is the result of poor management, violations that are left unpunished, and unpayable debt accumulating.
The report, which was issued on 31 May, indicates that the province’s Eskom debt has increased from R9,51 billion in 2020/2021 to R13,46 billion. The debt owed to water boards amounts to R1,4 billion.
The province’s total balance for irregular expenditure was R6,55 billion.
Late payments to suppliers incurred interest of approximately R835 million.
Some suppliers were paid up to 456 days late.
Sixteen out of the eighteen municipalities’ debt cannot be repaid.
Five local municipalities – Mbombela, Emalahleni, Lekwa, Govan Mbeki and Thaba Chweu – are currently under such severe financial pressure that it is doubtful that these municipalities are still viable.
These municipalities spend money they do not have, and then ‘borrow’ from the next year’s budget to cover the current year’s expenses.
Only two district municipalities, Ehlanzeni and Nkangala, received clean audit reports.
The province, furthermore, spent R245,37 million on consultants because the appointed municipal officials are unable to do the work themselves.
Mpumalanga is the only province that has not implemented an initiative to reduce its dependence on consultants.
The AG’s overall opinion on Mpumalanga is that there is poor governance and a lack of leadership in the province.
This mismanagement and consequent decline of the province will not stop until the ANC is removed from power.
Mpumalanga deserves better than the ANC.
Read the original article in Afrikaans by Werner Weber on FF Plus
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