North West Legislature Committee on Local Government concerned about conducts of CFOs in Municipalities under the Dr Ruth District
The North West Provincial Legislature’s Portfolio Committee on Local Government and Human Settlements led by Hon. Motlalepula Rosho has expressed extreme disappointment on the conduct of the Chief Financial officer of Naledi Local Municipality, Mr David Thornhill within the Dr Ruth Segomotsi Mompati District.
This came after the Committee held a meeting with Lekwa-Teemane, Mamusa; Naledi and Kagisano Molopo Local Municipalities over their 2013/14 financial year audit findings and annual reports.
In the year under review, Dr Ruth Mompati District Municipality received a disclaimer audit opinions whilst Naledi Local Municipality received an unqualified audit opinions with findings on predetermined objectives and compliance.
One of the key material findings and cause for a regression on the audit opinion of the district municipality from an unqualified to disclaimer audit opinion was the fact that auditors could not access the financial system which was created and solemnly owned by Mr Thornhill as a former Chief Financial Officer. The problem affected service delivery throughout the district municipality and financial performance of local municipalities.
The Committee Chairperson, Hon. Motlalepula Rosho said the conduct and behaviour of Mr Thornhill on failing to transfer skills and permission to operate the financial system at the district municipality is very concerning.
“We are very unhappy that when Mr Thornhill left the district municipality to assume the position of CFO at Naledi Local Municipality, the financial systems of the district municipality completely collapsed to such an extent that the Office of the Auditor General could not find the annual financial statements for auditing.
“He has also failed other municipalities within the district when he was contracted by the provincial and national government to assist them with preparations of annual financial statements by not transferring skills to employees, the impact thereof has left local municipalities with disclaimers,” said Hon. Rosho.
Political leadership and senior management of Dr. Ruth Segomotsi Mompati District municipality and Greater Taung Local Municipality failed to appear before the Committee and did not send written apologies.
The Committee was also very disappointed at the conduct and treatment of the Chief Financial Officer of Greater Taung Local Municipality, Mr Martin Vermaak towards the Office of the Auditor General and Department of Local Government and Human Settlements. “The CFO has refused to cooperate with the entity and departmental support on addressing audit findings. He cannot monopolise the municipality which affects its performance and service delivery,” said Hon. Rosho.
Lekwa-Teemane and Mamusa Local Municipalities received disclaimer audit opinions on the 2013/14 financial year.
The Mayor of Lekwa-Teemane Local Municipality, Cllr. Kagiso Palagangwe said the municipality has been working with the Office of the Auditor General on their audit action plans and verify whether it complies with relevant legislation.
“As part of internal controls, we are working towards reduction of fruitless, wasteful and unauthorised expenditure and contravention of supply chain management policies. Due to lack of capacity in the municipality, we have appointed consultants to assist us on debt collection and revenue enhancement.
“There are investigations on irregular expenditure such as the road pavement and library projects where we suspect that the budget was increased irregularly. We have also advertised the position of the chief financial officer,” said Cllr. Palagangwe.
The Committee welcomed the overall audit action plans presented by Mamusa, Lekwa-Teemane and Kagisano-Molopo Local Municipality and urged them to prioritise on effecting the SMART principle, prioritise on skills capacity in the finance section and limit the use of consultants at municipalities in ensuring the needs of communities are met.
Enquiries:
Namhla Luhabe
Deputy Manager - Communications
Tel: 018 392 7000
Cell: 079 527 0628
Fax: 086 695 3784
E-mail: namhla@nwpl.org.za
