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Free State municipality's payment of millions interdicted

───   LUCKY NKUYANE 13:36 Sun, 30 Jul 2023

Free State municipality's payment of millions interdicted | News Article
Free State High Court: Picture by Lucky Nkuyane

The Welkom-based Matjhabeng Local Municipality has been interdicted from making a multimillion-rand payment to a service provider.

The Free State High Court Judge on Friday (28/7) granted the provincial Hawks an order, interdicting the planned R23 million payment to a security company. 

The Hawks' provincial spokesperson, Zweli Mohobeleli, said the company is linked to the 2021 fraud and corruption investigation involving officials of the municipality. 

He said it is alleged procurement rules about the appointment of the security company were disregarded during the 2019/20 financial year and upon investigation, it emerged the said security company was appointed without a contract. 

A Free State High Court Judge has interdicted a multimillion-rand payment to a service provider. Photo: Lucky Nkuyane

The security company have allegedly been paid about R26 million by the municipality and the company has further made a court application to attach municipal assets due to the non-payment of this R23 million.

"Only an appointment letter confirming that the security company would be appointed for three months was found. However, this security company continues to work for the municipality.

“In 2021, members of the Serious Corruption Investigation Unit based in Welkom opened an inquiry into allegations of  fraud, corruption, and contravention of the Municipal Finance Management Act, 56 of 2003, involving municipality officials and a security company.”

The matter is set for 24 August 2023 for a final court order.


Meanwhile, the Head of the Directorate for Priority Crime Investigation (Hawks) in the Free State, Mokgadi Bokaba, says investigators are relentless in their pursuit to finalise this investigation and trust the Hawks legal team to ensure that the legal prescripts are followed to the latter.

"Rest assured, everyone involved in the facilitation of payments to the security company without following rules will be arrested. In addition, we are also looking into recovering everything purchased with monies stolen from the municipality,” Bokaba said.

The Hawks indicated investigations will continue.

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