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Report raises concern
auditor general report and 2019 salaries

Serious questions have been raised as to the Matjhabeng Local Municipality’s ability to continue as a going concern.

This was highlighted in the Auditor General (AG) report 2017-’18.

In the report the AG indicates that a material uncertainty exists which may cast significant doubt on the municipality’s ability to continue as a going concern.

The Matjhabeng Municipality incurred a net loss of R820 945 304 during the year ended 30 June 2018.

The municipality’s liabilities exceeded its current assets by R3 407 887 646.

Also highlighted was the fact that the municipality had been deducting pension, medical aid and Pay as You Earn from employees’ salaries, but had been unable to pay over the amount of R57 883 792 to the relevant third parties.

  • According to the AG report the municipality owed Eskom just under R2 billion and Sedibeng Water just over R2 billion. In 2019 the executive mayor of Matjhabeng will earn R1 047 528 annually. His cell phone allowance annually is R40 800.

Annual salaries for councillors were approved at a 4 % increase in July 2017, but these increases only became effective in 2019, which amounts to a backpay over the board of R569 207 to councillors in January 2019.

The total financial implication of salary increases to councillors in 2019 is R1 138 418.

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