MAHIKENG, North West — The National Treasury has officially withheld the equitable share of the Maquassi Hills Municipality, joining 69 other struggling local governments nationwide, as the North West Standing Committee on Public Accounts (SCOPA) aggressively questioned the municipality’s leadership over a devastating adverse audit outcome.
The punitive financial measure was enacted by the National Treasury due to the local government’s ongoing irregular expenditure and mounting unpaid debts to service providers. Years of persistent financial mismanagement and severe governance failures have significantly crippled the municipality’s operational capacity.
During a recent parliamentary briefing in Mahikeng, the municipal leadership was called to account for the dismal 2024/25 financial year results, which culminated in an adverse opinion from the Auditor-General. Municipal officials attributed the poor audit outcome to ineffective internal controls and a historical failure to implement the required audit action plan.
Corrective Measures and Financial Recovery Plans
Addressing the committee, the municipality’s Chief Financial Officer outlined a series of corrective interventions designed to address the Auditor-General’s findings and stabilize the local government’s finances.
The CFO detailed that the audit action plan has been comprehensively updated and is now treated as a standing agenda item during management meetings, within the finance portfolio, and during council reporting. Furthermore, a strict financial plan has been directed and is being monitored on a weekly basis.
The municipality has also entered the critical preparation phase for its Annual Financial Statements (AFS) and has formally requested intervention and assistance from the provincial treasury to help navigate the crisis.
SCOPA Chairperson Questions Leadership’s Demeanor
Despite the outlined recovery plans, the parliamentary committee was highly dissatisfied with the municipal delegation’s attitude. SCOPA Chairperson Smarts expressed visible anger during the proceedings, specifically calling out the officials’ lack of urgency and apparent indifference to the severity of the audit findings.
Chairperson Smarts fumed that the municipality’s leadership lacks the appetite to address the poor outcomes, pointing directly at their physical demeanor in the committee room.
“I’m worried about even your body language,” Chairperson Smarts stated, emphasizing the need for genuine concern from the officials. “Your body language doesn’t say, ‘Hey, we are worried. These things are serious.'”
Pension Funds Grant Grace Period Amid Arrears
The municipality’s dire financial position has also triggered a crisis regarding employee benefits, specifically the failure to remit mandatory pension fund contributions.
When pension fund representatives visited the municipality to address the arrears, officials explained their severe financial constraints. In response, the pension funds granted the municipality a three-month grace period, agreeing not to suspend services provided the local government does not accrue debt beyond this three-month window.
The municipality has since processed payments for the outstanding April and May contributions. Consequently, only the June contributions remain outstanding under the agreed grace period.
Demands for Historical Expenditure Reports
To ensure long-term transparency and accountability, SCOPA has issued a strict directive to the Maquassi Hills Local Municipality. The municipal team has been instructed to compile and submit a comprehensive report detailing all unauthorized, irregular, and wasteful expenditure incurred over the past five financial years.