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Free State municipality accused of embezzling over R70 million

───   LUCKY NKUYANE 11:04 Mon, 07 Nov 2022

Free State municipality accused of embezzling over R70 million | News Article
IMAGE: municipalities.co.za

The Zastron-based Mohokare Local Municipality in the Free State has been accused of embezzling millions of rands from the National Conditional Grant meant to pay power supply debt.

According to the newly elected EFF Provincial Secretary, Malefane Msimanga, the municipality was meant to pay the Bloemfontein-based Mangaung power utility Centlec over R70 million earlier this year in June but it is yet to make such payment. Msimanga says as a result residents of the Leratong Section in Rouxville and Extension 10 in Zastron, have been left in limbo. Msimang has further accused the MEC for Cooperative Governance (Cogta), Mxolisi Dukwana, of being ignorant whilst all these are happening under his “watchful eyes“.

“MEC Mxolisi Dukwana is deliberately sitting on a section 106 investigation report of the Mohokare Local Municipality. We are calling on MEC Dukwana to release an investigation report of Mohokare, so that consequence management can be applied to his caders who are found to be on the wrong side of the law in Mohokare. We are also calling for concomitant action against those who continue to confuse their personal purse with a public purse in Mohokare," Msimanga adds.

A leaked letter shown to OFM News indicates an inquiry from the power utility’s Chief Executive Officer (CEO) Malefane Sekoboto to the municipality about the non-payment which was set to come from the National Government’s conditional grant meant for electricity.

“The Mohokare Local Municipality's allocated grants, need to be utilised for electricity-related expenditures. Centlec (SOC) Ltd then incurs the grant expenditure on Mohokare Local Municipality’s behalf but Mohokare never transfers the grant money received relating to Centlec (SOC) Ltd. This results in the expenditure being carried against the annual trading surplus/deficit which results in an increased annual trading deficit,” Sekoboto says in a letter.  

The troubled municipality is also yet to pay its workers for the month of October 2022. Last week workers downed tools and demanded that their salaries be paid. OFM News previously reported that the Municipal Manager (MM) of the municipality was interdicted by the Free State High Court and ordered to vacate his office.

ALSO READ: Free State Municipal Manager told to vacate office

On Friday 7 October 2022, the Free State High Court Judge Phillip Loubser granted an interdict to four disgruntled ANC councillors who dragged the troubled municipality to court. OFM News previously reported that in an application made with the Free State High Court, the first respondent, Teboho Mochechepa, said: "The municipal manager, who is the fourth respondent in the court action, was allegedly and/or purportedly appointed as an MM on 31 August 2022, ostensibly by the Speaker, through dubious means.

Also at a sitting in October 2022 chaos and mayhem reigned as councillors insulted each other unabated.

ALSO READ: Insults hurled at Free State municipality's special council sitting

The municipality and the department are yet to comment on OFM News' enquiry whilst Centlec has referred all questions to the municipality in question.

OFM News

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