Vast improvement in Bela-Bela Municipality audit report

In the previous issue of Die Pos (6 September), Bela-Bela Local Municipality was mentioned, and it was reported that the Auditor-General (AG) found material irregularities within the municipality.

The report, issued on 27 August by the Auditor-General, Tsakani Maluleke, found that there had been irregularities with the service-level agreement between the municipality and a contractor.

The report also mentioned that: “The accounting officer is taking appropriate action to resolve the material irregularity by investigating the matter and taking legal advice on the process to follow”.

Communications Manager at Bela-Bela Municipality, Peter Moloto responded to Die Pos article of 6 September: “Based on the findings the Municipality implemented various remedial measures including the sourcing of legal opinion on the possibility of recovering revenue that was lost as a result of the above.

The Municipality was advised that it would be futile to try and recoup the money through legal process due to the exorbitant costs associated therewith.

Instead, the Municipality was advised that it would be better to engage the services of the newly appointed service provider to proceed with issuing the outstanding fines in order to collect the revenue and to remedy the adverse findings by the Auditor General’s office.

” Moloto also stated, and it is reflected in the AG’s report, that the financial officer is implementing the recommendations as outlined by the AG, and from the legal advice they obtained.

The AG’s report gave Bela-Bela Local Municipality a qualified report with findings. These findings were mentioned in the report.

Regarding expenditure issues the report stated that Unauthorized expenditure in Bela-Bela Municipality amounted to R35, 3 million for the year 2022/2023, although this is still a source of concern, it is less than the 2021/2022 financial year when this total amounted to R168,3 million (R133 million less).

Fruitless and wasteful expenditure amounted to R4, 5 million; the previous financial year amounted to R12,1 million.

Irregular expenditure was more than halved, from R138,6 million in 2021/2022, to R66,4 million for 2022/2023.

The Auditor-General’s report outlined: “There is doubt that the municipality will be able to continue operating (going concern uncertainty), and the municipality’s continuing operation has been in doubt for two consecutive years.”

The report also clarified that the municipality had no overdraft at year’s end.

It is undeniable that Bela-Bela Local Municipality has many challenges to overcome, but looking at the numbers, and the reduction in unauthorized expenditure, it is also clear that there is a vast improvement and the financial management is doing its best to turn the dire situation.

But all hope is not lost and a recovery program is necessary.