MAHIKENG, North West — The North West Provincial Legislature’s Standing Committee on Public Accounts (SCOPA) has heavily criticized the Maquassi Hills Local Municipality following its latest adverse audit outcome, demanding immediate accountability for persistent financial mismanagement and governance failures.
The struggling municipality is currently one of 69 local governments across the country that had its equitable share withheld by the National Treasury. This punitive measure was enacted due to ongoing irregular expenditure and mounting unpaid debts to service providers, which have severely weakened the municipality’s operational capacity over the years.
For the 2024/25 financial year, the Auditor-General handed the municipality an adverse audit opinion. During a recent parliamentary appearance in Mahikeng to account for these dismal outcomes, municipal leadership attributed the poor results to ineffective internal controls and a failure to implement the previously established audit action plan.
Addressing the committee, the municipality’s Chief Financial Officer outlined several corrective measures designed to address the Auditor-General’s findings. The CFO explained that the audit action plan has been updated and is now a standing item in management meetings, the finance portfolio, and council reporting. Additionally, a weekly-monitored financial plan has been directed, the municipality has entered the preparation phase for the Annual Financial Statements (AFS), and formal assistance has been requested from the provincial treasury.
Despite these explanations, SCOPA Chairperson Smarts expressed deep frustration with the municipal delegation, specifically calling out their demeanor during the proceedings. The Chairperson fumed that the officials’ body language failed to reflect the severity of the situation, noting a distinct lack of urgency and appetite to tackle the poor audit outcomes.
“I’m worried about even your body language,” the SCOPA Chairperson remarked, emphasizing that the committee expects a higher level of concern from the leadership. “Your body language doesn’t say, ‘Hey, we are worried. These things are serious.’”
The severe financial mismanagement has also triggered a crisis regarding employee benefits, specifically the failure to remit pension fund contributions. When pension fund representatives visited the municipality to address the arrears, officials explained their current financial constraints. In response, the pension funds granted a three-month grace period, agreeing not to suspend services provided the municipality does not accrue further debt beyond this window. The municipality has since processed payments for the owed April and May contributions, leaving the June contributions outstanding.
In conclusion, SCOPA has issued a strict directive to the Maquassi Hills Local Municipality team. The municipality is now required to submit a comprehensive report detailing all unauthorized, irregular, and wasteful expenditure incurred over the past five financial years, as lawmakers push for greater transparency and financial recovery.