North West provincial government is working on an auditing framework for traditional councils, the provincial government said on Monday.
“In an effort to broaden transparency and accountability on matters like this, the provincial government is working on an auditing framework for traditional councils which will ensure that audits are embarked upon that would accord government the necessary legislative authority to unravel any misuse of funds and take corrective action, which includes bringing culprits to book,” said spokesperson Brian Setswambung in a statement.
“The provincial government advises that any money spent by traditional councils would be in accordance with the estimates submitted by the same traditional councils. There are procedures for funds to be spent which include that expenditure be authorised by the traditional council to the provincial administration.”
He was responding to the outgoing Public Protector Thuli Madonsela progress report to Bapo-Ba-Mogale in Bapong near Brits on Saturday.
The community asked the Public Protector in 2012, to investigate allegations of systematic looting of the collective resources of the community, including funds held in the “D account”, an account controlled by the North West government into which mining companies paid royalties for communities on whose land they operated.
She was also asked to look into whether all of the royalty payments due to them from mining company, Lonmin, and others businesses mining on the community’s land were paid, and further asked to probe the alleged abuse of resources relating to the construction of Kgosi Bob Mogale’s palace.
In July, Madonsela told the community that they had R721,000 to its name when Auditor-General audited its account in 1994.
Over the past 20 years, the funds that were in the account amounted to more than R617 million, which was made up of R392 million in deposits and R224 million in interest earned. By 2014, the balance in the account had dropped to just over R495,000.
In 2014, the community stopped using the D account, preferring a newly established investment wing for its resources. Since then, about R40 million in royalties were received. Most of the money has since been spent.
Madonsela said forensic auditor Godfrey Rangongo and quantity surveyor Andre Moolman were appointed to verify who was paid, whether there was value for money and whether proper procurement processes were followed.
Lehlohonolo Nthontho, CEO of Bapo-Ba-Mogale Investments, said a reputable firm of auditors had been appointed to audit Bapo-Ba-Mogale’s books.
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