Auditor-General raises concern over governance failings in northern KZN municipality

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.

- SIPHESIHLE BUTHELEZI

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 longstanding 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 material financial loss for the municipality," said Maluleke.