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Central SA

Calls for Auditor-General to investigate Matjhabeng Municipality

───   LUCKY NKUYANE 11:53 Wed, 15 Nov 2023

Calls for Auditor-General to investigate Matjhabeng Municipality  | News Article
The Welkom-based Matjhabeng Local Municipality. Photo: Lucky Nkuyane

“This municipality is marred by financial maladministration, corruption, and mismanagement, and is on the brink of a complete shutdown of all basic services.”

Pressure continues to mount over the troubled Matjhabeng Municipality in the Free State.

The Welkom-based municipality has recently been in the news for all the wrong reasons, including failure to pay workers’ salaries and the attachment of its bank account by the High Court. 

This has led to strong criticism by opposition and political parties in the province, including ActionSA. The party’s provincial chairperson, Patricia Kopane, said the party has since approached the Auditor-General to probe the running of the municipality. 

“ActionSA requests the Auditor-General, Tsakani Maluleke, to investigate the Matjhabeng Municipality’s leadership, governance, financial and performance management in terms of sections 4(1) and (3) of the Public Audit Act (PAA). This municipality is marred by financial maladministration, corruption, and mismanagement, and is on the brink of a complete shutdown of all basic services,” she said.

OFM News previously reported that ActionSA called for Matjhabeng to be placed under administration and the council to be dissolved.

Kopane said according to Maluleke's latest financial management report for Matjhabeng, the municipality is in desperate need of intervention. She said Maluleke raised concerns about the municipality’s debt exceeding its assets by R8,4 billion and highlighted that it also incurred a deficit of R1 billion.

“There are rife allegations that the mayor refused to pay three service providers R88 million for services rendered, allegedly demanding a kickback of R4 million from each company. Matjhabeng exemplifies a case of a failing municipality, which is the reason why ActionSA will not remain idle. We are resolute in fighting corruption and maladministration. We believe that our institutions should exist solely to fulfill the state’s development mandate through delivering services with pride to South Africans.

“It is against this context that ActionSA requests the Auditor-General to investigate the aforementioned allegations,” Kopane said.

OFM News also previously reported that the National Council of Provinces’ Chairperson, Amos Masondo, has written to the Free State Premier Mxolisi Dukwana to ask that they intervene and take over the financial administration of the municipality.

The municipality failed to honour various arrangements with service providers. Recently, 24 municipal vehicles to the value of R41 million were attached by the sheriff. During a media briefing, Mayor Thanduxolo Khalipha revealed the municipality owes Eskom and Vaal Central Water board over R5 billion each. The municipality also owes third-party contributions.

OFM News/Lucky Nkuyane Corné/Daphné

 

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