The Freedom Front Plus (VF Plus) warns that the Govan Mbeki Local Municipality’s unqualified audit opinion for 2024/25 should in no way be construed as an indication of stability or sound governance.
It only appears to conceal the problems of a municipality in serious financial distress, with poor controls, significant non-compliance and an utter lack of effective service delivery.
An unqualified opinion simply means that the financial statements are technically acceptable – it cannot hide the scale of the crisis.
During the most recent council session, the Freedom Front Plus emphasised that the report by the Auditor-General (AG), together with the mid-year report of the Audit and Performance Committee, reveals a disturbing reality.
The facts are clear: revenue collection stands at a shocking 32%, unauthorised and irregular expenditure exceeds R1,2 billion in a single year, debt to Eskom and the water board totals more than R6,6 billion combined, and the budget deficit has already reached R733 million.
Creditor payments are deferred, and the AG openly asserted that the Municipality is not financially sustainable.
Service delivery shows the same signs of decline. Although the entire infrastructure budget was spent, only a third of the targets were achieved. Large amounts are wasted on covering interest and penalties, which offer no value for residents.
In addition, a serious environmental irregularity was identified at the Embalenhle Wastewater Treatment Works, where pollution has already caused damage, with no remedial steps being taken.
The mid-year report confirms poor performance, with targets not met and indicators not complying with basic principles.
The Freedom Front Plus rejects any portrayal of the Municipality as healthy or compliant. It is an institution in crisis, with serious financial risks, weak controls and no consequence management for misconduct.
The Council and municipal management should urgently move from mere reporting to taking decisive action, including visible consequence management for financial transgressions, improved revenue collection, full implementation of audit action plans and tangible improvements in service delivery.
Govan Mbeki residents deserve more than well-worded reports, they deserve positive changes at grass-roots level.
The Freedom Front Plus will keep pressing for full accountability and a municipality that promotes the interests of its community.
