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Risk management in Mbombela paints a sombre picture

The strategic risk-analysis report of the Mbombela Local Municipality (Mbombela/Nelspruit, Barberton, Hazyview, Kaapschehoop, Skukuza, White River) paints a sombre picture for the 2023/2024 financial year.

That is, if important issues and recommendations concerning strategic risks are not addressed. The report identifies poor financial stability and serious cash-flow deficits due to a lack of strategic control measures for revenue improvement.

Rates and taxes are collected on only 30% of the properties in the Municipality, but all residents expect service delivery.

Overtime paid to municipal workers currently exceeds R14 million per month and, according to the report, there are no control measures or mitigation plans in place to curb it.

Revenue losses as a result of a 25% water loss from bulk supplies and tampering with water and electricity meters are causing serious problems, seeing as Mbombela cannot implement measures to put a stop to the theft or water wastage due to leakages.

Consequence management for unauthorised, irregular, and fruitless and wasteful expenditure is also a major problem.

Fruitless expenditure amounting to R136 million for the 2022/2023 financial year was referred to the Municipal Public Accounts Committee (MPAC) for further investigation, but very few of the recommendations made by the Committee are ever implemented.

The ANC lacks the political will to take risk assessment seriously, and to implement a fiscal turnaround strategy.

The FF Plus will put pressure on municipal management to implement and follow up on the abovementioned.

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