Central SA
#Vrede municipality in spotlight─── KATLEHO MORAPELA 12:19 Tue, 22 Jun 2021
The lack of revenue collection, lack of accountability, irregular tenders, and escalating Eskom debt are amongst some of the few concerns the Free State’s Phumelela Municipality must address.
According to the opposition in the Free State Legislature, this municipality has for years failed its residents.
The municipality, which includes the infamous town of Vrede, was scrutinised for its poor audit outcomes on Tuesday before the Public Accounts and Finance Committee. Represented by its Mayor Tlokotsi Motaung and accounting officers, the committee heard how the municipality is battling to generate revenue with the bulk of its budget going towards salary payments.
The DA’s James Letuka sharply raised concerns with how the municipality coughs up millions to pay consultants whilst it has a high staff compliment. He says the municipality continues to incur high irregular expenditure and fails to comply with procurement procedures whilst the residents are left to bear the brunt.
The Municipality’s Chief Financial Officer, Francis Ralebenya, however, told the committee there are several investigations underway and that senior managers have all been asked to sign performance agreements.
He said some of the expenditures were as a result of water losses. Ralebenya said their conditional grants are spent in full and that infrastructure projects are now prioritised.
The municipality serving the towns of Memel, Vrede, and Warden has for years been embroiled in corruption allegations with the failed Vrede Dairy Project under scrutiny.
OFM News
