a) The Local Government: Municipal Structures Act No. 3 of 2021 introduced section 79A which now makes it mandatory for each municipality to establish Municipal Public Accounts Committees (MPAC). One of the key responsibilities of MPAC, is to review comments made by management in the audit action plan to address issues raised by the Auditor-General South Africa (AGSA).
To support and strengthen the functioning of the MPACs, the Department established the MPAC and Council Committees Forum to support MPACs to perform their legislative responsibility. The discussion at the Forum is inclusive of matters relating to issues raised by the AGSA; investigation on Unauthorised, Irregular, Fruitless and Wasteful (UIF&W) expenditure in accordance with section 32 of the MFMA, read with s79A of the Municipal Structures Act. The Forum includes representatives from the National Treasury, SALGA, provincial departments responsible for local government, and the AGSA.
The implementation of the recommendations to address identified material irregularities are evaluated by the department as an integral part of assessing the adequacy of the audit action plans and progress on the implementation of the audit action plans. Engagements are also held with some of the MPAC provincial forums on their oversight role relating to issues raised by the AGSA.
Municipalities are required to refer identified material irregularities that are of a criminal nature to law enforcement agencies for further investigation. Progress in relation to investigations of the reported cases is provided by law enforcement agencies at the Local Government Anti-Corruption Forum (LGACF), which was launched by the Department as a coordination structure of anti-corruption efforts in the local government sphere. On an ad hoc basis, the AGSA is also invited to the LGACF to make presentations on material irregularities in local government and progress in relation to addressing the material irregularity findings.
b) The Department will collaborate with its key stakeholders, including the National Treasury, SALGA, provincial departments responsible for local government, and the AGSA, to identify municipalities with persistent non-compliance or lack of action for intervention, encourage MPACs to hold management accountable for poor performance and transgression.
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