The ailing municipality is expected in the hot seat on Tuesday (5/5) after it emerged Mangaung spent more than its entire budget while achieving just 50% of its service delivery targets. It spent 113% of its budget.

Mangaung has been under provincial intervention since January 2020, escalating to national intervention in April 2022. A financial recovery plan, approved in September 2023, was intended to stabilise finances and restore governance.

However, findings by the auditor-general (AG) paint a bleak picture, revealing that only 58% of the recovery plan’s activities have been implemented. The municipality remains stuck in what has been described as the “rescue phase” after 22 months.

The AG was also unable to verify key financial information, including water revenue, overtime payments, and whether some goods and services paid for were actually delivered.

Despite an increase in conditional grants to R788.53m in the 2024/25 financial year, the metro underspent R191.73m. This follows a similar underspending of R193.59m the previous year.

As a result, National Treasury withheld R140.98m in funding due to slow project implementation, further affecting critical infrastructure development.

One such project, a water initiative valued at over R106m, is only 26% complete. Meanwhile, Mangaung owes R642.05m for bulk water and is losing nearly half its supply, amounting to about R495.55m, through leaks, burst pipes, and illegal connections.

The Special Investigating Unit is probing allegations of corruption within the metro police and the Integrated Public Transport Network, dating back to 2017. However, the investigation has been delayed due to the municipality’s failure to provide requested documentation. A separate probe into the network project uncovered possible improper procurement of buses and infrastructure.

It’s understood council has since resolved that disciplinary action be taken against implicated officials, that the matter be referred to the Directorate for Priority Crime Investigation for criminal investigation, and that civil action be pursued to recover financial losses.

The ailing metro leadership, including mayor Gregory Nthatisi, municipal manager Sello More, speaker Bongani Mathae, and CFO Zuziwe Thekisho, have frequently attributed the ongoing failures to previous administrations.

“Let me indicate this to you ... 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 Nthatisi.

Further investigations by the Hawks involve fraudulent payments linked to the indigent register, where proper approval processes were allegedly bypassed. In another instance, political staff were reportedly appointed to non-existent positions, with their salaries later classified as irregular expenditure.

Despite the mounting concerns, the municipal public accounts committee has yet to finalise its report, according to parliamentary media liaison Faith Ndenze.

EFF MP Sam Matiase has strongly criticised the situation, stating the “corrupt” ANC is incapable of resolving the crisis. He argued the metro’s biggest challenge is one of moral and ethical decay. Years of corruption in Mangaung have left residents bearing the brunt of failing services.

OFM News/Kekeletso Mosebetsi cvs

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