North West Legislature Public Accounts Committee Applauds Intervention Programmes of Department of Cooperative Governance, National and Provincial Treasuries in Municipalities

The North West Provincial Legislature Public Accounts Committee chaired by Hon. Motlalepula Rosho has applauded the intervention programmes of the Department of Cooperative Governance and Traditional Affairs and National and Provincial Treasuries of the Mandatory Financial Recovery Plans initiated in local municipalities in the province. This follows the last round of Municipal Finance Management Act public hearings of the 2024/25 audit outcomes the Committee held with Ngaka Modiri Molema District, Madibeng, Mahikeng, Ramotshere, Tswaing and Ratlou Local Municipalities.

The plans were invoked in terms of governance, financial management, institutional capacity and service delivery under Section 139(5)(c).

Hon. Rosho said financial recovery plans have been welcomed by both administrative and political wings of district and local municipalities. “Unlike in the past where there was general resistance on government intervention programmes in municipalities, we want to celebrate progress registered as the interventions are finally showing positive results as they are aimed at stabilising service delivery and revenue enhancement, supply chain management processes, billing systems and infrastructure projects.

“We also want to praise the support from SALGA as a support structure. Municipalities have been able to address recommendations of audit findings, Post Audit Action Plans and investigations and consequence management on the increasing unauthorised, irregular and fruitless and wasteful expenditure and material irregularities. Some municipalities are also moving from the rescue to stabilisation phases such as Ramotshere who have exited the intervention programme after successfully implementing its recommendations,” said Hon. Rosho.

The Committee noted the improvement in most municipalities but also noted that Madibeng is still at rescue phase and are hopeful that they will finally get to stabilisation phase. “We’ve also noted that this Financial Recovery Plan is turning the tide in the municipalities by enforcing consequence management in the Budget and Treasury and Performance Management Units (PMU); terminating endless irregular contracts and underperforming contractors and dealing with material irregularities.,” said Hon. Rosho.

She said the municipalities must submit detailed reports on the work done by the intervention team; litigations and legal cases and costs incurred; investigations conducted by the Municipal Public Accounts Committees and their close-out reports at the end of the current term and copies of the latest unauthorized, irregular and fruitless and wasteful expenditure (UIF& W) Reduction Strategy as well as an implementation Plans with clear timelines.

“The municipalities should also submit reports on post audit action plans; the skills transfer from consultants appointed for the compilation of annual financial statements for audit periods and oversight work done by the committees of council,” said Hon. Rosho.
For media enquiries or to arrange interviews with the Chairperson of the Committee contact Namhla Luhabe on 079 527 0628.

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Issued by: North West Provincial Legislature: Media & Communications Unit on behalf of the Chairperson of the Provincial Public Accounts Committee – Hon. Motlalepula Rosho.