The Zastron-based Mohokare Local Municipality was accused of embezzling the said amount of money from the national conditional grant meant for the power supply in that area. Now the troubled local municipality claims that it does not owe the Bloemfontein-based Mangaung Metro Municipality’s power Utility Centlec R70 million.

ALSO READ: Free State municipality accused of embezzling over R70 million

The spokesperson for the municipality, Letlhogonolo Mafatman, says the amount not paid to Centlec from the conditional grant was R14 million during the period of 2017/18 to 2021/22. Mafatman says they are dissatisfied and disappointed by Centlec's remarks following an interview with one of the SABC’s radio stations.

“The municipality made constant endeavours to meet with the management of Centlec to resuscitate good working relations, Centlec has been difficult to make such transpire."

The Mohokare Local Municipality believes that Centlec is a service provider which has an obligation to provide quality services on its behalf. At this point in time the relations are not mutually beneficial. The municipality and its communities are not satisfied with the level of service provision from Centlec, including the responsive time when there is a fault, and the quality of the work. 

"The agreement in one of the bilateral meetings earlier this year - for Centlec to have a maintenance plan and repair mechanism - nevertheless has not happened. The communities of Mohokare, specifically Zastron, are expecting regular electricity supply failure due to non-maintenance of lines,” Mafatman adds.

OFM News previously reported that 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 said in a letter.

Earlier, the Auditor-General (AG), Tsakani Maluleke, flagged the municipality for failing to account for millions of taxpayers' money spent on water meters.

ALSO READ: Free State municipality can’t account for R5 million

The municipality allegedly paid at least R5 million to service providers to install water meters but can’t produce traceable and tangible proof of it.

OFM News