By KEDIBONE MOLAETSI
9 June 2025- The North West Provincial Legislature’s Standing Committee on Provincial Public Accounts (SCOPA) has condemned the Matlosana Local Municipality for incurring unauthorised expenditure of R1.1 billion during the 2023/24 financial year. The criticism follows SCOPA’s public hearing on audit outcomes in line with the Municipal Finance Management Act.
The SCOPA Chairperson, Smuts Matshe said the municipality has regressed from an unqualified to a qualified audit opinion due to poor internal controls, over-reliance on consultants and irregularities in contract management, including on the provision of paraffin to communities.
Matshe said the municipality is currently under financial recovery intervention, but recorded irregular expenditure of R249 million, as well as fruitless and wasteful expenditure of R105 million with R1.1 billion in unauthorized expenditure.
“The committee also noted the high level of litigation initiated against the municipality. Even now Matlosana is sitting with a Municipal Manager and a Chief Financial Officer, who are alleged to have been arrested and are facing criminal charges that emanate from their responsibilities in the municipality.
“The council has failed to exercise oversight and enforce accountability, especially regarding post-audit action plans and Section 71 financial reports.
“Matlosana has failed to investigate duplicate payments. SCOPA has directed that a written report be submitted within seven days by the municipality to cover amongst others, progress in implementing post-audit action plans, funding strategies for unfunded budgets and investigation into material irregularities and UIF&W,” he said.
Matshe said this includes implementation of consequence management, functionality and effectiveness of oversight and audit committee.
Meanwhile, the executive mayor of Matlosana Local Municipality, Fikile Mahlope said: “Around R800 million of the unauthorised spending stems from non-cash debt impairments due to poor revenue collection.
“The municipality has introduced a UIF&W reduction strategy to address the issue.”
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