During the 2023–2024 financial year, municipalities in the province recorded R7.25 billion in unauthorised, irregular, fruitless, and wasteful expenditure. This was revealed during debates on the declaration of the report of the portfolio committee on Cogta regarding the oversight visit to the Free State. 

It’s specifically focused on Mangaung and Maluti-A-Phofung.

EFF MP Hlengiwe Mkhaliphi did not mince her words, describing the situation as pure corruption costing the lives of citizens. “Maluti-A-Phofung has been under coalition government since 2021, but instead of focusing on service delivery, the mayor and the speaker are fighting each other by accusing one another of bribery and sabotaging council quorums.

“During our oversight visit, the deputy speaker, the entire presentation was about political infighting, not the needs of the people,” Mkhaliphi said.

For the past three financial years, no Free State municipality has achieved a clean audit. The province ranks among the top ten most dysfunctional in South Africa. 

Disconnected from community

Of its 23 municipalities, 19 are financially distressed, while only four are barely functioning. Mkhaliphi accused the administration in Maluti-A-Phofung of collapsing due to nepotism and unqualified appointments.

“Corruption is the order of the day in the ailing Free State metro. The Mangaung mayor and speaker are missing in action and seem completely lost and disconnected from the community,” she said.

She also raised an alarm over allegations of ghost employees who continue to draw salaries in Mangaung. “There are serious allegations of ghost employees still receiving salaries as we speak.

“The municipality has failed to account for this theft. This must be investigated and acted upon immediately. A forged signature scandal allowed an employee to withdraw a large sum of money.

“The CFO lied, claiming the case was withdrawn due to a lack of evidence, and the fraudster was rehired into this municipality. This is unacceptable, and we demand a full report on this.”

Mkhaliphi also expressed concern over ongoing corruption in the public transport sector, stating despite clear evidence of wrongdoing, there is still no transparent report from municipal officials.

‘Reckless expenditure of R470 million on overtime payments’

The Auditor-General’s report painted an equally grim picture, revealing Mangaung is technically insolvent, with liabilities exceeding assets by R468 million.

ActionSA Free State Chairperson Patricia Kopane condemned what she called a culture of corruption deeply rooted in the metro’s administration.

“The reckless expenditure of R470 million on overtime payments over the past two years, including payments made to a sewer cleaner while he was incarcerated, is not only outrageous but also a glaring symbol of the ANC-led administration’s contempt for ethical governance and fiscal responsibility,” said Kopane.

The ailing metro had shifted blame to previous administrations, claiming many of the current challenges were inherited.

“Let me indicate this to you, ladies and gentlemen, the period under review is the period that accounts for 2021/22, 2022/23, mainly 2023/24. Now, without any excuse, we came into the municipality effectively from October 2023 when budgets and all processes were run,” said Mangaung Mayor Gregory Nthatisi.

Nthatisi said his administration had launched several investigations uncovering shocking irregularities.

“We did serious investigations. We also discovered there were officials who were sanctioning overtime even to people who were not working, others were not even in the province, others were in jail. They were earning a salary, they were getting overtime.”

Auditor-General Tsakani Maluleke previously told MPs three cash-strapped municipalities, Maluti-A-Phofung, Masilonyana, and Tokologo, failed to trace the trail of funds spent by their administrations.

In 2022, irregular expenditure in the province increased from R7.63 billion to R9.18 billion, further underscoring the deepening crisis of governance and accountability in the Free State. Mkhaliphi said the has not been much tangible action despite Free State Cogta MEC, Saki Mokoena, acknowledging the challenges.

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OFM News/Kekeletso Mosebetsi mvh