Audit reveals Polokwane Muni underspent millions
Residents want to know why the municipality did not use the money to deliver services
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POLOKWANE – While the city’s residents languish due to lack of services and insufficient infrastructure, a recent report by the Auditor General revealed the Polokwane Municipality failed to use over R179 million of its capital budget for the 2015/16 financial year.
This means the municipality had not achieved all of its objectives for the 2015/2016 financial year. Included in this amount was the unspent portion of the Municipal Infrastructure Grant (MIG) amounting to over R133 million.
The MIG is a municipal infrastructure funding arrangement combining all existing capital grants for municipal infrastructure into a single consolidated grant. This includes water services projects, national electrification programmes, urban transport funds and buildings for sport and recreation programmes, among others.
The municipality’s biggest problem remains supplying residents with water. Despite several planned projects to combat these issues in the city, it remains a problem. Concerned residents in the city reported a burst pipe on the corner of Jorissen and Oos Street, as well as blocked and overflowing sewerage grates in Westenburg recently which the municipality failed to attend to speedily. This begs the question, if money is set aside to address these issues, why is the municipality not implementing their plans?
Other concerns for the municipality include periodic cable theft, borehole equipment theft and illegal water and electricity connections which has resulted in material losses to the amount of over R120 million, according to the audit report.
Furthermore, collection of outstanding payments for municipal accounts remain a millstone around the municipality’s neck after the audit found material impairments to the amount of more than R420 million as a result of doubt over the collectability of long-outstanding consumer debts.
Polokwane Mayor, Thembi Nkadimeng, stated all services to government departments will be halted until their accounts have been settled.
The audit also revealed the municipality and its entity incurred over R522 million in unauthorised expenditure.
Municipal Spokesperson, Matshidiso Mothapho said: “Expenditure used for the benefit of the municipality without following the necessary processes is the main reason for the unauthorised expenditure. It does not mean that the money was stolen or used for personal matters by municipal entities”.
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