This, after Busisiwe Mkhwebane on June 30 released reports indicating how 15 municipalities in Limpopo, North West and Gauteng irregularly invested about R1.6 billion in the bank. Mkhwebane, in the investigative reports, indicates that investments made by these municipalities were in violation of the Municipal Financial Management Act (MFMA). 

OFM News previously reported that municipalities in the North West alone invested R316 million of taxpayers’ money with the bank. Mkhwebane’s findings revealed that the conduct of municipalities was improper and constitutes maladministration. She highlighted that several remedial actions will have to be taken within three months.

These include the attendance of workshops on the provisions of the MFMA by officials responsible for investments within 90 days from the date of the report. The submission of quarterly reports to the Council on investments made or to be made by the municipality, as well as ensuring that Internal Audit Units conducts compliance audits and report to the Council.

She highlighted that Municipal Managers will have to ensure that these are implemented and that Speakers of the municipalities will have to submit quarterly progress reports to the MECs of Cogta and Provincial Treasuries.

The MEC’s responsible for Cogta in the North West, Limpopo and Gauteng will also have to submit regular reports to the Director-General of the National Treasury on the implementation of the remedial actions.

OFM News has reported that the office of the Auditor-General has recently indicated how North West municipalities are still crippled by their investment in the now defunct bank. It was found that the Madibeng Local Municipality invested R31 million of their conditional grant, the Dr Ruth Segomotsi Mompati District Municipality invested R150 million, the Moretele Local Municipality invested R50 million from their water services infrastructure grant and the Mahikeng Municipality invested over R83 million.

OFM News