SIU in touch with cash-strapped FS Maluti-A-Phofung Municipality
LUCKY NKUYANE
10:41 Wed, 17 Apr 2019
SIU in touch with cash-strapped FS Maluti-A-Phofung Municipality | News Article
The SIU says it has been in touch with the embattled Free State local municipality of Maluti-A-Phofung with intentions of speeding up their investigation process into allegations of fraud and maladministration by municipal officials.


This after the president, Cyril Ramaphosa, during his visit at the municipality on an election campaign recently announced that the municipality will be at the centre of the scrutiny.

In a statement, the SIU says Ramaphosa has to sign and gazette a proclamation which will outline the scope of investigations to be undertaken.

OFM News previously reported that two officials, Chief Financial Officer, Nrateng Khumalo, and the Expenditure Manager, Diakanyo Khampepe, were arrested by the Hawks last month for fraud and corruption amounting to more than R4 million.

The SIU says in an event that it uncovers evidence pointing to a criminal act, the SIU is required by law to refer such criminal evidence to the National Prosecuting Authority (NPA) because SIU does not have the powers to prosecute.

It further says in an event that it uncovers evidence pointing to a criminal act, the SIU is required by law to refer such criminal evidence of misconduct to the Municipal Manager to take disciplinary action against affected parties.

Previously the cash-strapped municipality blamed what it called the tampering of electricity meter boxes and the vandalism of bulk and electricity distribution infrastructure as the main reasons why it constantly fails to honour its debt with the power utility Eskom. This follows after Eskom attached assets of the municipality as a result of its debt worth about R2.8 billion.

The unit says the duration of its investigation is informed by the complexity thereof and says it will consider issuing an interim report within six to twelve months of the investigations.

“In the event that the investigation reveals evidence of an irregularly concluded contract, the SIU will institute civil litigation to set the contract aside and to recover any monies or assets that the Municipality may have lost,” the SIU concludes.


OFM News


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