In a formal communication, the Treasury flagged Mangaung’s ongoing failure to address its unauthorised, irregular, fruitless and wasteful expenditure (UIFW). The metro has not taken adequate action to rectify or curb these violations, the Treasury said, triggering one of its harshest financial enforcement measures.

DA Cllr Tjaart van der Walt warned the development signals a local authority on the brink of fiscal failure and service delivery collapse. Despite the gravity of the situation, municipal leadership had failed to bring the issue before council.

“Despite the gravity of this threat, the executive mayor has failed to table the Treasury letter and its implications before council, keeping both councillors and residents in the dark. This is not in compliance with legislation.

“In terms of MFMA section 52(d), the mayor must report to council on the implementation of the budget and the financial state of the municipality.”

The consequences of financial dysfunction are already being felt on the ground, he added. “Diesel shortages and nonpayment to contractors have already led to a failure to provide basic service delivery in the city in November.”

He also raised alarm over the state of the municipal public accounts committee (MPAC), the oversight body responsible for dealing with UIFW. MPAC is “dysfunctional” and “the committee has failed to follow its approved work plan”.

The DA wrote to the speaker on 6 November to highlight the committee’s lapses.

In a scramble to address both the Treasury warning and concerns, a last-minute MPAC meeting was convened on Tuesday (18/11) without prior access to the documentation, contrary to the standing rules and MPAC terms of reference, said Van der Walt.

The situation worsened the following day when more than R7 million in UIFW expenditure was presented under the same procedural defects, he said.

Treasury has instructed Mangaung to demonstrate a 75% reduction in its UIFW balances, implement consequence management, and show concrete progress in restoring financial order. Van der Walt, however, says the metro is nowhere near compliance, placing its equitable-share allocation and consequently service delivery at immediate risk.

The DA will request an urgent council meeting where the mayor must table the full Treasury correspondence and provide a comprehensive account of Mangaung’s financial situation and its recovery plans, Van der Walt confirmed. In February, the auditor-general’s report exposed severe financial mismanagement and service delivery failures.

Tsakani Maluleke’s report revealed R1.3 billion in unauthorised expenditure, R227 million in irregular expenditure, and R122.5 million in fruitless expenditure.

OFM News has requested comment from the office of the mayor.

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OFM News/Kekeletso Mosebetsi cvs