DA wants Auditor-General to probe mismanagement at non-paying municipalities

The Democratic Alliance is to request that the Auditor-General‚ Thembekile Makwetu‚ launch an independent investigation into the gross mismanagement of funds at municipalities that have failed to pay Eskom in the Northern Cape‚ Eastern Cape‚ Mpumalanga‚ North West and Free State.

It said this was in accordance with Section 5 (1) (d) of the Public Audit Act.

“The DA will also request that these municipalities launch urgent investigations into the mismanagement of funds‚ in accordance to the Local Government: Municipal Finance Management Act (LG-MFMA) and bring the guilty municipal managers to justice‚” said DA spokesman on cooperative governance and traditional affairs Kevin Mileham.

• Eskom making progress with defaulting municipalities after threats of supply cutsOf the 34 municipalities who were due to have the electricity supply interrupted for non-payment‚ 21 have signed payment plans to avoid the cuts. 

He said Section 65(2) (e) of the LF: MFMA places an obligation on the accounting officer of the municipality to ensure that all money owing is paid within 30 days of receipt. Deliberate or negligent failure to do so constitutes financial misconduct in terms of Section 171 of the LG: MFMA. Subsection (4) thereof‚ together with the LG: MFMA Regulations‚ requires that such misconduct be the subject of extensive investigation and disciplinary hearings.

“The impending electricity cuts across South Africa should be viewed as a national crisis. Hundreds of thousands of South Africans will be left without the power they need for basic services‚ including health care.

“Small and large businesses will also have no choice but to shut their doors‚ weakening the local economy and resulting in many job losses‚” Mileham warned.

Eskom announced on Monday that it was interrupting the electricity supply to two municipalities in the Free State - Dihlabeng and Masilonyana - with immediate effect. It is also planning to interrupt the supply to 20 other municipalities unless payments are made and agreed arrangements are concluded on arrear debt balances.

Mileham said it was time that decisive action was taken.

“This can only be done when we finally hold those in the ANC accountable for their blatant disregard for the people’s money. Our public representatives must honestly serve the people‚ and must always act in their interests‚” he asserted.