KOSRA met with the AG (Auditor General) on 4 November 2025. This is the second meeting we have had with the AG .

Meeting was with the new senior Eastern Cape AG executive and AG’s Ndlambe audit manager.

We appraised them of the Kenton residents’ 29 September 2025 public meeting with Ndlambe’s MM and mayor and the presentation of our demands which are discussed below:-
Those concerns /issues are:

• The massive write-offs of R1.7bn fruitless & wasteful, irregular and unauthorised expenditure with the associated zero consequence management by Ndlambe.
• Lack of water delivery in Kenton, some areas of which have had no water for over 3 years.
• Lack of water infrastructure maintenance & subsequent high water losses.
• High segment business losses of R413m since 2019.
• Ever increasing and high uncollectable debt-
  • very high provisions of some 89% before the FY 2025 write-offs ;
  • huge debt write off In FY 2025 of R116m against the provision
  • Long dated Organs of state debt most of which is over 1 year.
• High performance bonuses for MM & directors despite the service delivery failures
• Sewerage infrastructure problems & persistent sewerage plant failures
• Negligible road maintenance and meagre budget allocations for it
• Going concern questions as to whether Ndlambe was a going concern given its dire financial results and miss management

They appreciated our input especially as we have information about the greater environment & other issues, eg, infrastructure etc they may not know of.

• They were very concerned with respect to the water losses and sewerage issues. Their expert will assess the latter and give expert advice. We described the RO [Reverse osmosis] plant & the new operators and that their responsibilities ended once the water was pumped into the reservoirs.
• Water losses – these we discussed tanker usage and the probable existence of water mafia. They appeared to be aware of this being so!
• As regards water losses they stated that Ndlambe’s are higher than the norm.
  The phrase used for the water and sewerage issues was “significant irregularities”.
• They were aware of the dire debt situation and it is a focus area of their audit
• Performance bonuses – very surprised considering the service delivery failure issues. Will discuss this with Council.
• Sec 139 prospect.
  We were surprised that they were not against it and said the Sec 139 interventions in “Grahamstown” had paid dividends.

Unqualified Audit Opinion.

Our comment was that this has become a point of celebration & self-congratulation by Ndlambe despite the significant findings raised by the AG which Ndlambe conveniently ignore.

It was most unlikely that the AG will not change the opinion as the accounting processes are correct, despite the dismal results, BUT they will certainly be highlighting as significant issues:-

• the lack of water delivery & infrastructure problems water losses
• sewerage issues
• uncollectable debt
• continued absence of consequence management.

They undertook to review the going concern issues.

It was a more fruitful meeting than last year’s one, which was the first interaction any of the various rate payers’ organisation had made contact with them.

They were more positive & appreciative of our input / interaction than last year

KOSRA