mmegi

Auditor General lambast councils

GCC. PIC PHATSIMO KAPENG
GCC. PIC PHATSIMO KAPENG

Local authorities are failing to generate their own sources of income and also keep poor records of their assets, the Auditor General has found.

Writing in her latest report, which was tabled before Parliament last week, Pulane Letebele found that rates arrears owed to councils had risen to P627.8 million in the 2021-22 financial year, from P548.1 million in 2020-21 and P495.2 million in 2019/20.

Rates are the key source of revenue councils can raise for themselves, as government has announced that it intends to cut its subventions for local authorities, particularly those near urban areas. Letebele also found that rural councils were equally failing to following up on debts owed, with these arrears mounting into the hundreds of millions over the years.

Editor's Comment
Micro-procurement maze demands urgent reform

Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...

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