A report tabled before the Select Committee on Cooperative Governance and Traditional Affairs by the provincial Cogta department has indicated how the municipality is still grappling with these issues despite being placed under administration.

The department says whilst there have been tremendous improvements in terms of water supply and other service delivery, the financial management and administration of the municipality are still not of a desired standard.

The report tabled before the Select Committee this past Friday, also indicates that the Auditor-General's audit opinions for the municipality have been a major cause of concern for almost a decade.

It is highlighted that "the overall financial position of the Maluti-A-Phofung Local Municipality is a major source of concern, given its inability to pay and meet financial obligations timely as contemplated in the Municipal Finance Management Act".

Whilst the report indicates an urgent intervention by the provincial executive is necessary, it also indicates that the provincial government is hopeful the recent appointment of Municipal Manager, Tseko Mothamaha, and Chief Financial Officer, Jeremiah Baleni-Mazinyo, will soon yield favourable results.

OFM News over the weekend reported that this municipality was amongst the three Free State Municipalities that had to account before the committee over its financial troubles.

The cash-strapped Mangaung Metro Municipality and Metsimaholo Local Municipality were those who also had to account on their financial woes and lack of service delivery.

Whilst Metsimaholo is known for its political instability, and Mangaung Metro for being the first metro to be placed under administration and downgraded twice by Moody’s Credit Ratings, Maluti-A-Phofung is popularly known for its huge Eskom and waterboard debt.

The municipality in recent months made national headlines over lack of water supply when sporadic protests erupted and residents declared a shutdown. This led to an allocation of R200 million for water provision by Water and Sanitation Minister, Lindiwe Sisulu. 

OFM News