Pietermaritzburg municipality on verge of collapse SundayTribuneSA
Durban - Pietermaritzburg is on the verge of collapse. A failure to comply with key legislation, poor financial management, weak internal controls and the lack of consequence management have resulted in the embattled Msunduzi Local Municipality being in an extremely precarious position.
Hlanganani Makhanyela, a senior manager in the provincial office of the AG, tabled the audit report to the council last week. The municipality’s financial statements were found to be so riddled with misstated financial statements “that we disagreed with almost all the amounts and disclosures”. “Systems and controls were not designed in a manner that would prevent, detect and address risks, which had an impact on financial performance and compliance reporting. In this regard, management did not ensure that regular, accurate and complete financial and performance reports, which were supported and evidenced by credible information, were prepared.”
One of the frustrated residents, Lorraine Michael of Northdale, said: “I incur costs by driving to the department just to get my statements. They are always incorrect and the employees are not able to assist us.”
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