The Mangaung Metropolitan Municipality in South Africa's Free State is struggling financially, despite being placed under a financial recovery plan in 2020. The Auditor-General South Africa (AGSA) has reported that the municipality's current liabilities exceed its assets by over R468.2 million, indicating financial distress. The AGSA also found that progress on implementing the recovery plan has been slow.
The Mangaung Metro in the Free State is still plagued by financial mismanagement despite being put under a financial recovery plan in 2020. Picture Henk Kruger / Independent NewspapersTHE Mangaung Metropolitan Municipality has been told by the Auditor-General South Africa that it is under financial distress and that its current liabilities exceed its current assets by over R468.2 million.
The national government intervened in the municipality in 2020 and the FRP imposed on it due to its failure to fulfil its obligations. The municipality also materially under spent on the conditional grants by R193.6m due to not properly monitoring the usage of grant funding and the National Treasury withheld over R296.6m in conditional grants due to the slow implementation of projects.
Other AGSA findings include the municipality being unable to obtain sufficient appropriate audit evidence for R246m in overtime. The party is demanding a full investigation into the almost R2bn in unauthorised, irregular, and wasteful expenditure and the R1.3bn debt owed to Centlec, a state-owned entity distributing in Mangaung, and which led to the disconnection of electricity to key government buildings last week.
FINANCIAL MISMANAGEMENT RECOVERY PLAN AUDITOR GENERAL DEBT SOUTH AFRICA
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