The municipality is legally compelled to prepare an Annual Report which accurately reflects the performance of the institution in the critical areas of service delivery, as well as the financial performance of the municipality.
The draft Annual Report of the Nelson Mandela Bay Municipality was tabled in council on 24 January 2013, before being referred to the Municipal Public Accounts Committee (MPAC) for review and the drafting of the Annual Oversight Report.
The DA regrettably has noted a significant increase in areas of non-compliance, which has culminated in the qualified audit opinion by the Auditor General for the period under review.
The matters of concern noted, include repeat mentions of many existing areas of concern in the Audit Report of the Auditor General.
Critical areas of concern raised in the AG’s audit report include:
- Significant legal uncertainties – the metro is currently the defendant in a significant number of lawsuits to the value of R100 million;
- Unauthorized expenditure amounting to R318,7 million was incurred due to overspending against vote numbers of approved budgets;
- An additional R234 million in irregular expenditure was incurred as a result of contraventions of Supply Chain Management procedures and processes;
- Fruitless and wasteful expenditure amounting to R4,5 million was incurred due to breaches of contractual agreements;
- Bad debt expenditure amounted to R251 million due to bad debt write-off’s and provision for doubtful debts;
- An impairment expense of R93 million was incurred against the ‘new billing system’, which was abandoned before it could be implemented;
- Water losses of 19 272 megalitres (19 272 million liters) with a
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