The Freedom Front Plus (FF Plus) warns that the Govan Mbeki Local Municipality’s unqualified audit opinion for 2024/25 should not be mistaken for financial stability or sound governance.
“An unqualified audit opinion merely indicates that the financial statements are technically acceptable; it does not conceal the scale of the municipality’s crisis,” said Aranda Nel-Buitendag Freedom Front Plus Councillor, Govan Mbeki Local Municipality, “The Auditor-General’s report and the mid-year Audit and Performance Committee report reveal serious financial distress, weak controls, widespread non-compliance and deteriorating service delivery.”
Key concerns:
- Revenue collection is only 32%.
- Unauthorised and irregular expenditure exceeds R1.2 billion for the year.
- Debt to Eskom and the water board totals more than R6.6 billion combined.
- The budget deficit has reached R733 million.
- Creditor payments are being deferred, and the AG has declared the municipality not financially sustainable.
Service delivery is failing. Although the full infrastructure budget was spent, only one-third of planned targets were achieved. Large sums are being consumed by interest and penalties, providing no value to residents. A serious environmental irregularity at the Embalenhle Wastewater Treatment Works has already caused pollution-related damage, with no effective remediation underway.
The mid-year performance report confirms poor delivery: targets are unmet and indicators fail to comply with basic performance principles. There is an absence of consequence management for financial misconduct.
The FF Plus rejects any portrayal of the municipality as healthy or compliant. The Council and municipal management must move beyond reporting and take decisive action: institute visible consequence management for financial transgressions, improve revenue collection, fully implement audit action plans, and deliver tangible improvements in service delivery.
“Govan Mbeki residents deserve more than polished reports — they deserve real, grassroots change. The Freedom Front Plus will continue to press for full accountability and for a municipality that serves the interests of its community,” concluded Aranda