4.2 The main issues that were identified by the PEC related to the failure to comply by the Municipality with section 20(1)(a) of the Health Act (Act No. 63 of 1977); which requires that every local authority to take lawful, necessary and reasonably, practical measures to maintain its locality at all times in a hygienic clean condition. There was also a breach of accounting procedures in terms of Circular 10 of 2007 of the Municipal Finance Management Act (MFMA); failure to implement recommendations and support programmes by the Provincial and National Departments of Local Government; lack of reliable database of indigent people; failure to submit annual financial statements for audit purpose as required by section 126 of the MFMA; lack of complete asset management policy/system and strategy; absence of proper financial and internal controls mechanisms as well as poor financial management which included cases of underspending of the Municipal Infrastructure Grant (MIG).