Madibeng officials involved in VBS and unauthorised debit orders must be suspended

Issued by Eugene van der Schyff – DA Councillor: Madibeng Local Municipality
14 Jul 2020 in Press Statements

The Democratic Alliance (DA) has written to the Acting Municipal Manager, Neo Maape, following the Auditor General’s damning report against Madibeng Local Municipality.

Madibeng’s financial situation has worsened in the previous year after it invested R31.5 million in VBS mutual bank.

The previous Municipal Manager and Chief Financial Officer resigned in December 2018. However, no further action has been taken against them, it is pending the finalization of the investigation.

The 2017/2018 audit also identified unauthorised debit orders for private individuals’ DSTV accounts and purchases of AMC cookware that were made against the municipality’s bank account. The sum total of the debit orders could not be determined due to a lack of records and documentation by the municipality.

These transactions have been reported to the Acting Municipal Manager and Executive Mayor for them to act and prevent further losses by putting stronger access controls to the municipality’s accounts.

Putting stronger access controls and appropriate checks would allow only authorised personnel to authorise debit orders.

Despite making these recommendations and reporting this to the Municipal Public Accounts Committee (MPAC) no investigation or action has been taken to stop these transactions or to recover the money from the responsible individuals.

These transactions further prove that the municipality is failing to implement financial controls over public funds which will further hinder the municipality from delivering services to the community.

The DA has written to the Acting Municipal Manager to request outcomes concerning the money invested into VBS bank and unauthorised debit orders made against the municipality’s account.

All officials and politicians involved in VBS saga and unauthorised debit orders must be suspended and face criminal charges for fraud and corruption.

Public money must be used to provide and improve service delivery to the people of Madibeng.