Auditor-General Kimi Makwetu is suing the beleaguered and broke Makana Municipality for about R10million in outstanding audit fees.
According to court papers‚ Makwetu — after auditing and reporting on a municipality’s accounts‚ financial statements and financial management — calculates and charges the municipality audit fees.
It does so after consultation with national Treasury.
In terms of the Public Audit Act‚ the municipality is then required to pay the audit fees within 30 days of being invoiced. If it fails to do so‚ it is charged interest and the AG must take legal steps to recover the fees.
Despite submitting monthly invoices to Makana Municipality between February 2013 and December 2014‚ Makwetu has not been paid a cent‚ according to court papers.
"As at December 2014‚ the total amount owing by to was R10.8million‚ which included interest‚" an extract from the claim says.
More than R9.1million of this was debt older than 60 days.
Despite demands‚ the municipality had not coughed up‚ leaving Makwetu no choice but to resort to court.
The municipality will fight the court action‚ according to its Grahamstown lawyer Mark Nettelton. He did not elaborate‚ but said the municipality had filed a notice to defend the matter.
Makana Municipality was placed under provincial administration last year and an administrator‚ Pam Yako‚ was appointed to head it up. Yako had not commented at the time of writing. — Daily Dispatch
AG sues troubled Eastern Cape municipality
According to court papers‚ Makwetu — after auditing and reporting on a municipality’s accounts‚ financial statements and financial management — calculates and charges the municipality audit fees.
It does so after consultation with national Treasury.
In terms of the Public Audit Act‚ the municipality is then required to pay the audit fees within 30 days of being invoiced. If it fails to do so‚ it is charged interest and the AG must take legal steps to recover the fees.
Despite submitting monthly invoices to Makana Municipality between February 2013 and December 2014‚ Makwetu has not been paid a cent‚ according to court papers.
"As at December 2014‚ the total amount owing by to was R10.8million‚ which included interest‚" an extract from the claim says.
More than R9.1million of this was debt older than 60 days.
Despite demands‚ the municipality had not coughed up‚ leaving Makwetu no choice but to resort to court.
The municipality will fight the court action‚ according to its Grahamstown lawyer Mark Nettelton. He did not elaborate‚ but said the municipality had filed a notice to defend the matter.
Makana Municipality was placed under provincial administration last year and an administrator‚ Pam Yako‚ was appointed to head it up. Yako had not commented at the time of writing. — Daily Dispatch
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