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'Matjhabeng was milked by service providers’

───   OLEBOGENG MOTSE 13:28 Fri, 25 Mar 2022

'Matjhabeng was milked by service providers’ | News Article

The Matjhabeng Local Municipality’s coffers were hijacked by service providers, including private attorneys that represented the municipality in litigation.

This is the general sentiment expressed by the Free State Department of Cooperative Governance and Traditional Affairs (Cogta), Matjhabeng’s management, as well as trade unions, who attended a sitting in Bloemfontein of the Select Committee on Cooperative Governance and Traditional Affairs, Water, and Sanitation in the National Council of Provinces (NCOP) on Friday. 

The municipality has since the ascension of Thanduxolo Khalipha to the mayoral role in late 2021, appeared to be making significant progress in that regard, doing away with the outsourcing work that can be carried in-house. The provincial head of Cogta, Mokete Duma, expands on this abuse by service providers.

Duma says previously there was no contract management by the municipality. Some of Matjhabeng’s service providers had no service level agreements (SLAs) with the municipality that detailed what they were claiming for. They were merely submitting invoices for work allegedly done. Duma says there were budget deviations amounting to R150 million. An engineering team was sent to investigate some of these alleged projects, bringing this figure to less than R20 million - an indication that something was indeed amiss with respect to tenders in the municipality.

Duma’s presentation also stressed the lack of credit control at the municipality by the previous administration that has left them with poor cash flow and operational budget deficits. At present the municipality has been declared insolvent, with its liabilities exceeding its assets.

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