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Last modified: 09 Feb 2018
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AG issues unqualified audit report for Kouga Municipality

29 January 2018

The Auditor General has given the Kouga Municipality a clean bill of health for the 2016/17 financial year by issuing an unqualified audit report.

The Municipality raised R 148 million in property rates for the financial year and received a further R 144 million in the form of grants and subsidies from national and provincial government.

Income of R 337 million was raised through the sale of electricity, water, sanitation and waste removal.

Staff costs showed a marginal decrease of R 700 000 when compared to the previous financial year with a total cost of R 228 million to the Municipality.

The purchase of water and electricity cost R 220 million, while R 51 million was spent on operational costs. This includes items such as legal fees, chemicals, insurance, telephone and postage.

Overall the Municipality ended the financial year with R 84 million in the bank, up from R 78 million in the previous financial year.

The newly elected DA government in Kouga aggressively sorted out the contingent liabilities facing the Municipality and reduced the amount from R 109 million to R 49 million.

Outstanding trade creditors dropped from R 114 million to  R 91 million, while debtors showed a marginal drop from R 77 million to R 73 million.

Performance management was again criticised by the Auditor General, while water losses representing 38,5 % of water purchased was identified.

The losses were due to leakages, tampering with meters, incorrect ratios used for bulk meters, faulty meters and illegal connections (theft of water).

 “We have implemented a performance management system in the Municipality and will be able to address this finding during the next audit,” said the Mayor of Kouga Elza Van Lingen.

“Water losses are a serious concern and we budgeted for additional vehicles for our Infrastructure department to equip them to attend to water leaks more efficiently.

 “We also spend R 23 million during the financial year on the Kruisfontein and St Francis Bay Waste Water Treatment Plants, with another R 4 million spent upgrading bulk infrastructure in Kruisfontein.

This lead to 391 RDP houses being constructed in Kruisfontein, which saw people receiving a house after waiting for many years,” added Van Lingen.