This comes after MDM attained yet another disclaimer audit outcome for the 2021/2022 financial year. The MDM’s inability to provide clean, running water for residents has cited another reason for the intervention. The audit report has remained unchanged from 2020/2021 due to the municipality’s continued failure to keep full and proper records to support the annual financial statements. As a result of this failure to keep records, COGHSTA deemed it fit to put Mopani under mandatory intervention.
MEC for COGHSTA, Basikopo Makamu, said they aim to support MDM to turn the situation around. “We want to assist them to clean up their administration and to provide water to the people of Mopani,” he said. Makamu called the court interdict unfortunate, as he believes that MDM accepted the intervention in good faith and they would be in a better situation to obtain a clean audit in the future. Meanwhile, MDM spokesman, Odas Ngobeni, declined to comment as the matter is sub judice.
Also read: Audit report is disappointing
In previous conversations with the Herald regarding the disclaimer audit, Ngobeni said that MDM is dealing with historic findings around unauthorised, irregular, wasteful, fruitless expenditures, the bulk of which dates back as far as 2009. This month, Lepelle Northern Water (LNW) implemented a 20% water supply restriction on the communities of BaPhalaborwa due to an R257 million water debt owed by Mopani. However, Mopani was able to make an immediate payment and subsequently, the restriction was later lifted.
Last year LNW implemented water restrictions in the Phalaborwa and Greater Letaba municipal areas due to outstanding debt by MDM. In recent months Tzaneen, Nkowankowa, and surrounding areas have been dealing with water shortages. One of the reasons is infrastructure, which is the responsibility of MDM. “We do replace ageing infrastructure as and when funds become available. We have just concluded the Thabina to Lenyenye bulk line with a budget of over R200 million, which we then implemented in phases. There are limitations in terms of budget, but we do refurbish the bulk water and sanitation infrastructure, and this we normally do through our operational and maintenance budget,” Ngobeni concluded.
