Although the Dipaleseng Local Municipality received an unqualified audit report for the 2024/25 financial year, it is by no means cause for complacency.
The report does show slight improvements compared to previous years, but the main findings of the Auditor-General (AG) and the Audit and Performance Audit Committee reveal that the Municipality remains trapped in a serious financial and governance crisis.
The report highlights the following:
- Financial sustainability is at risk: Debtors exceed R1 billion, of which R974 million is older than 90 days. Creditors stand at R621,8 million, including outstanding Eskom and water board accounts. Fruitless and wasteful expenditure amounted to R10,5 million in the second quarter alone due to late payments and interest.
- Poor legislative compliance: Material findings on procurement and contract management show deviations exceeding R1,6 million.
- Low performance on key indicators: By the middle of the 2025/26 financial year, only 63% of targets were achieved, with the Infrastructure Services Department performing particularly poorly at just 26%.
- Risks and internal control shortcomings: Unsustainable finances, poor service delivery, ageing infrastructure and a high litigation risk were identified as core threats.
These findings confirm that the ANC-controlled Municipality is still unable to ensure basic financial management and service delivery.
Dipaleseng residents are still victims of maladministration and a lack of accountability.
The Freedom Front Plus (VF Plus) endorses the audit report’s findings and insists that a practical turn-around strategy be followed by the Municipality.
This strategy should include a financial recovery plan focused on improved revenue collection, cost-cutting and installing smart meters to limit losses. A revised service standards charter should also be drafted and, after consultation and training, officially adopted so service delivery can be clearly measured and improved.
In addition, cost control should be stringently enforced – with overtime being limited to essential services and requiring prior approval from the Municipal Manager.
A web-based audit action plan also has to be completed by March 2026 to address all the AG’s findings and internal shortcomings.
Dipaleseng cannot afford for these problems to escalate.
The Freedom Front Plus will keep pressuring the Council, the Executive Mayor and provincial government to take full responsibility and decisive action to restore the Municipality’s finances and service delivery.
Freedom Front Plus Foreign Policy: The FF Plus promotes a foreign policy that prioritizes South African interests.
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