The embattled mayor of the Metro, Mxolisi Siyonzana, recently revealed during an interview with national news channel eNCA, that a portion of R500 million meant for service delivery was forfeited.

This is the second time the Metro forfeited millions of rands meant for essential services desperately needed by residents, who are often irate with the municipality over the alleged lack of key services.

ALSO READ: Cash-strapped Mangaung forfeited over R400m

In 2020, the National Treasury is said to have withheld grant funding of R429 million due to underspending. The Auditor-General (AG), Tsakani Maluleke, said in her report that Treasury’s action was a result of the delays by the Metro in completing grant-funded projects. 

In the eNCA-interview, Siyonzana explained that the city received R500 million from the National Treasury in April, two months before the end of the financial year.

He said the grant had conditions, one of them being that it was to be spent on the Vista 2 and 3 housing development.

"We managed to spend R142 million and applied for a rollover, which was declined. We couldn't use that money in Botshabelo or Thaba Nchu," said Siyonzana.

Siyonzana has since pleaded with the residents of Mangaung to be patient and support the current council as they try to stabilise the municipality and improve the quality of service delivery across the city.

In April, the Cabinet stripped the Metro’s council of its executive powers and placed it under administration after the municipality failed to make progress in improving its financial and service delivery performance.

Mangaung Metro is the only municipality that adopted an unfunded budget for the fiscal years 2018-19 and 2019-20, and it is the Free State's first municipality to be placed under government administration for failing to provide key necessary and basic services.

ALSO READ: Mangaung, only metro to adopt an unfunded budget

OFM News reports that ailing and cash-strapped municipalities across central South Africa, including the Free State, are attracting the attention of the National Treasury with their failure to adhere to the Municipal Systems Act.

ALSO READ: Ailing Free State, North West municipalities attract Treasury's eagle eye

The Mangaung Metro recently came under scrutiny from opposition parties after half a million rand was said to be missing or unaccounted for.

It was alleged that the R500 000 meant for a diesel purchase to service the Metro fleet, including its garbage collection trucks, has since gone missing. The Metro has denied the allegations and challenged anyone with proof to open a case with the police.

OFM News