Auditor-General raises concern over governance failings in northern KZN municipality
Image: Supplied
The Auditor-General of South Africa (AGSA), Tsakani Maluleke, formally instructed KwaZulu-Natal Cooperative Governance and Traditional Affairs (Cogta) MEC Reverend Thulasizwe Buthelezi to intervene in a northern KwaZulu-Natal municipality, citing serious governance and financial failings.
The embattled uMkhanyakude District Municipality has come under renewed pressure after Cogta confirmed that the MEC had received formal correspondence from the Auditor-General requesting immediate intervention following the uMkhanyakude District Municipality's continued failure to address material irregularities.
The AGSA's instruction is based on findings relating to the municipality's long-standing non-implementation of a credit and debt collection policy, as required under Section 62(1)(f)(ii) of the Municipal Finance Management Act (MFMA).
'The failure of the municipality to implement its credit and debt collection policy for a number of years and to take reasonable steps to recover outstanding debt from consumers is likely to result in a material financial loss for the municipality,' said Maluleke.
The AG further noted that 'the failure of the accounting officer to take appropriate actions to address the material irregularity led to a decision by the AGSA's Material Irregularity Committee to approve reporting in the audit report of the municipality.'
The correspondence defines a material irregularity under the Public Audit Act as a contravention of legislation or breach of fiduciary duty that results in, or is likely to result in, financial loss or substantial harm to a public institution or the general public.
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The MEC has until August 15 to submit a formal report to the AGSA on the steps being taken to address the matter. 'The department stated that the MEC will abide by the AG's request and comply with the given deadline,' a department spokesperson stated.
The latest development comes in the wake of a standoff between MEC Buthelezi and uMkhanyakude municipal leadership earlier this month.
On July 14, the MEC was forced to break locks and hold a meeting outside the municipal offices after the speaker and municipal manager allegedly blocked his access. During that visit, he announced that the municipality would be placed under administration in terms of Section 139(1)(b) of the Constitution and introduced Bamba Ndwandwe as the appointed administrator.
He also revealed that a Section 106 forensic investigation had been launched to probe allegations of corruption and maladministration.
After that incident, the municipality responded by rejecting the intervention, accusing the MEC of undermining local democratic processes and acting without due consultation.
'The intervention infringes upon the constitutional rights of the council… and creates an impression that elected representatives are dysfunctional, which is not a fair reflection,' Speaker T.S. Mkhombo had said in a statement at the time.
Mkhombo argued that uMkhanyakude had made strides in stabilising governance and finances since the end of a previous intervention in April. The municipality also warned of possible legal action, saying it was exploring a review under the Promotion of Administrative Justice Act (PAJA).
However, with the AGSA's direct involvement now confirming governance and financial management lapses, the pressure on the municipality's leadership has intensified.
'MEC Buthelezi holds the AGSA's office in the highest regard and is committed to acting in the interest of the residents of the uMkhanyakude District,' Cogta said. 'These residents bear the brunt of failed service delivery due to a lack of governance, financial, and consequence management measures within the District.'
The municipality had not responded to a request for comment by the time of publication.
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