. Most of the challenges mentioned in the audit report of the AG had been addressed and implemented. The MPAC has been established and a Performance Management System policy proposal has been submitted to Council for adoption. . The establishment of an audit committee remains a challenge, but the municipality was working on putting one in place soon. . The municipality has no CFO at the moment and expect to have the position filled by end July 2012. Political interference by councillors in the appointment of the CFO contributed to the long delay in filling the position. . There has been an acting MM for the past 5 years, but the municipality was able to appoint someone on a permanent basis recently. . The vacant Performance Manager position would also be filled soon. . The Mayor reminded the Delegation that the municipality came from a past that left it with tremendous challenges that would take decades to correct. The turn-around strategy of the municipality was in place and was being monitored. . There was credible evidence at hand that some councillors were also involved with electricity theft thereby contributing to the huge revenue loss experienced by the municipality regarding electricity. Those same councillors were also preventing the appointment of the company that would service the paid electricity meters. . The company, as a result, has taken the municipality to court for breach of agreement. The case was ongoing. Initial reports indicated that over 90% of electricity meters had been breached and almost 98% of water meters were old and not functional. . The MM spoke about the assistance the municipality received from the Dr K Kaunda district municipality towards the functions of the internal audit committee.