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Inputs on report invited

The Dihlabeng Municipality incurred a net loss of R124 666 463 during the year ended 30 June 2018.

This was stated by the report of the auditor-general (AG) at a special council meeting on Wednesday (30/01).

The municipality’s current liabilities exceeded its current assets by R310 604 478.

In addition, the municipality owed Eskom R196 787 501 and Bethlehem Hydro R15 089 242 as at 30 June 2018, which has been long overdue.

“These events or conditions, along with other matters, indicate that a material uncertainty exists that may cast significant doubt on the municipality’s ability to continue as a going concern,” stated the report.

Unauthorised expenditure of R170 591 172 was incurred due to overspending of the approved budget.

Irregular expenditure of R37 138 456 was incurred, due to non-compliance with supply chain management requirements. In addition, the full extent of irregular expenditure is still in the process of being determined.

Fruitless and wasteful expenditure of R20 261 298 was incurred due to interest and penalty charges on the late payment of suppliers.

Material losses of R54 590 809 was incurred as a result of a write-off of irrevocable trade debtors.

Material water distribution losses of R6 542 104 were incurred by the municipality mainly due to the ageing infrastructure and leakages in the water network.

The municipality was under investigation by the Directorate for Priority Crime Investigation (Hawks) on allegations of irregularities in supply chain management and disposal of assets. The investigation was still ongoing at the reporting date.

The municipality invites the local community, all interested stakeholders, parties, structures and organisations to peruse and submit comments or inputs regarding the 2017-’18 Draft Annual Report by 28 February.

The document will be available at the municipal head office, the offices of unit managers, as well as all public libraries.

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