TO ALL MEDIA
MEDIA RELEASE
23 September 2026
noch Mgijima Local Municipality has noted social media posts alleging financial losses in the previous financial year. The posts reflect a misunderstanding of municipal finance legislation.
The Municipality confirms that it incurred Irregular, Unauthorised, Fruitless and Wasteful Expenditure [UIF&W] as defined in Section 32 of the MFMA. This is a *compliance classification* matter and does not mean there was financial loss, that services were not rendered, or that corruption occurred.
Irregular Expenditure has been caused by historical SCM procedural non-compliance, including deviations not fully documented and contracts extended from prior years that were deemed non-compliant. All goods and services were received and verified. No personal enrichment occurred.
Unauthorised Expenditure was mainly Mainly due to overspending on non-cash items such as depreciation and debt impairment after year-end adjustments, and overspending on bulk electricity and essential services to sustain service delivery. No actual cash loss was incurred.
Fruitless and Wasteful expenditure relates to Eskom, SARS and other creditors due to late payments caused by cash-flow constraints from low collection rates, not negligence.
In all instances, there was no financial loss, no revenue foregone, and no fraud or corruption identified. The matters have been referred to Council for condonation in terms of Section 32 of the MFMA.
The Municipality has strengthened internal controls, SCM procedures and revenue enhancement measures to prevent recurrence and remains committed to clean governance.
END
Issued by:
Enoch Mgijima LM
