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Internal controls have been set up to help non-performing municipalities in the Eastern Cape, the local government department said on Tuesday.
"Financial issues concerning municipalities are being attended to. This includes... expenditure in the Buffalo city metro,"
spokesman Mvusiwekhaya Sicwetsha said.
The municipality included East London, King William's Town, and Bisho.
The Inkatha Freedom Party said earlier on Tuesday that it was concerned by the "alarming" corruption in the province's
municipalities.
The party said it was shocked that the Buffalo municipality had R150m in irregular spending during the past financial year.
"Why did the municipality spend R140m on service providers whose contracts had expired? An additional R67,000 was
wasted on unused offices," the party's co-operative governance spokesman Peter Smith said.
Sicwetsha said the IFP was "ignorant" of efforts by the department and municipalities to attend to internal financial
controls.
"Internal audit controls have been set up in all our municipalities... this was done in the last financial year, and all
municipalities operate within these structures."