ANC cadres in Thaba Chweu implicated in Unauthorized, Irregular, Fruitless and Wasteful (UIFW) Expenditure of over R500 million unsuccessfully attempted to erase the hefty amount through a special council sitting on January 31.
It is understood that during the 2021/2022 financial year, the municipality incurred and disclosed UIFW Expenditure to the tune of R257 million. In the next financial year, the municipality went on to incur and disclosed an amount of R330 million in UIFW Expenditure.
A recommendation to council to write off the combined amount of R580 Million was rejected with council recommending an investigation be done by the Municipal Public Accounts Committee (MPAC).
This is a mere symptom of the concerns in the municipality’s supply chain division. These are signs of weak internal controls and there are no reasonable steps being taken to remedy the situation.
Even more concerning, it has emerged that there were discrepancies in the management of the Water Services Infrastructure Grant (WSIG) and the Municipal Infrastructure Grant (MIG).
We have also learnt that the National Treasury withheld funds that were scheduled to be transferred to the municipality due to underperformance amongst other factors.
It was further disclosed during the meeting that the Municipality is set to lose R29 million in Equitable Shares because the National Treasury disapproved a roll over grant. This comes as a result of the municipality’s failure to use money meant for service delivery issues.
Residents deserve accountability for financial mismanagement and poor governance that continue to plague the municipality into despair.
The DA will pursue serious consequence management and ensure that MPAC carries out its investigations timeously. Individuals found implicated should be brought to the book.