Scopa concerned with Joe Morolong local municipality over poor financial statements

The Standing Committee on Public Accounts (Scopa) raised their concerns with the lack of intervention at the Joe Morolong Local Municipality after they submitted poor financial statements for the 2018/2019 financial year.

“There seems to be a lack of political will to effect consequence management in this municipality and it is moving towards total collapse,” the committee said in a statement.

Scopa has called for a forensic investigation into the consultants contracted by the municipality when compiling financial statements and on the work that has been done.

The committee said they wanted to make sure whether the value of the money received was equivalent to the work produced.

The committee was informed by the auditor-general that the Joe Morolong Local Municipality submitted poor financial statements for the 2018/2019 financial year, despite the municipality using consultants for the task that has cost the municipality R6.2 million.

Another challenge facing Joe Morolong was that despite hiring a qualified chief financial officer, the municipality cannot produce financial statements without the use of consultants.

This committee said the matter has resulted in the municipality using consultants consistently over the past three years.

“As a result of this concerning information, we have resolved to conduct an oversight visit to Joe Morolong Local Municipality,” the committee said.

Among the issues for discussion during the oversight will be to request a forensic investigation into the use of consultants and for the provincial government to institute section 139 of the Constitution to place the municipality under administration.

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