Pietermaritzburg municipality on verge of collapse
Msunduzi Municipality Msunduzi Municipality
Durban - Pietermaritzburg is on the verge of collapse.
A failure to comply with key legislation, poor financial management, weak internal controls and the lack of consequence management have resulted in the embattled Msunduzi Local Municipality being in an extremely precarious position.
According to a report by the KwaZulu-Natal office of the auditor-general, the provincial capital moved from a disclaimer of opinion to an adverse opinion for the 2017/18 financial year.
And the city remains in disarray, with billing problems and persistent service delivery failures frustrating ratepayers.
Hlanganani Makhanyela, a senior manager in the provincial office of the AG, tabled the audit report to the council last week. The municipality’s financial statements were found to be so riddled with misstated financial statements “that we disagreed with almost all the amounts and disclosures”.
Auditors found the municipality had not complied with legislative requirements and failed to implement internal controls.
“Management did not implement a proper records management system to maintain documents related to performance, assets, revenue and expenditure,” Makhanyela said.
“Systems and controls were not designed in a manner that would prevent, detect and address risks, which had an impact on financial performance and compliance reporting. In this regard, management did not ensure that regular, accurate and complete financial and performance reports, which were supported and evidenced by credible information, were prepared.”
The delivery of basic services has been affected since 2017. Waste was not collected when workers went on strike. The SAP financial system sent out incorrect statements, giving an impression of incompetence. Residents have not received bills at home and those who received problematic statements had to go in person to the municipal offices.
“The system does not show consumer consumption. It mixes up information and the wrong statements are issued, which upsets people, who then come to the offices to fight with staff,” said an employee who requested anonymity. “The management is not taking our complaints seriously.”
One of the frustrated residents, Lorraine Michael of Northdale, said: “I incur costs by driving to the department just to get my statements. They are always incorrect and the employees are not able to assist us.”
The SAP system was implemented in 2016 and has cost the city more than the initially estimated R90million.
Ntobeko Ngcobo, Msunduzi acting spokesperson, said the system had not caused the billing problems. “The January 2019 billing was undertaken successfully on January 31 as planned and the due date for those bills was February 28. The invoice or statement extraction started on February 1. Unfortunately, the program ran for longer than expected it took four days to run and produce the extraction file.
“The printers are printing bills, which will be sent to customers by post or emailed,” said Ngcobo. Load shedding had also had an impact on the system.
Staff complaints had been addressed. “However, staff decided to leave their work stations... without permission, which is tantamount to a withdrawal of labour.
"Action is being taken against them.”