Irregular expenditure: The municipality had a history of irregular expenditure. Irregular expenditure amounting to over twenty seven million Rand (R27m) was occurred during the 2010/11 financial period and another thirty three million Rand (R33m) during the previous year. This was due to directors and principals of entities trading with the municipality, whom failed to declare that they were in service of the state. Furthermore, awards were made to suppliers without applying the preference points system as required by the Preferential Procurement Policy Framework Act.