The municipality has to make use of consultants to compile the annual financial statements as the necessary expertise does not exist in the municipality. The Municipality is experiencing a financial crisis and is unable to pay the outstanding audit fees of R6 million. The financial situation of the municipality could be attributed to, but not limited to, lease agreements entered into where the value of the goods were less than 3 per cent of the amount paid for the leases. These leases resulted in payments of up to R7 million a year over a five year period. No procurement processes were followed.