DA opens HAWKS case to investigate fraudulent documents presented to pass unfunded budget

Issued by Chris Hattingh – DA Constituency Head, JB Marks Local Municipality
19 Jul 2022 in Press Statements

Note to Editors: Please find attached soundbites in English and Afrikaans by Cllr Chris Hattingh.

The DA has registered fraud charges with the HAWKS after receiving confirmation from the North West Provincial Treasury that a forged document was used to persuade the JB Marks Council that its 2022/23 budget was funded and sustainable.

During the JB Marks budget debate, the DA repeatedly objected to the budget stating that:

• it was unfunded and not sustainable,

• that austerity measures be implemented,

• that the capital expenditure budget be prioritised and reduced according to priorities,

• and that the revenue streams of the municipality be protected and improved.

The DA then quoted from a Provincial Treasury Budget Assessment Report which confirmed the DA’s position that the budget was not only unfunded and non-sustainable, but that there were serious other deficiencies in the budget including that the municipality “must reduce capital expenditure and ensure that it is limited to available revenue”, and “must develop a budget funding plan” and “must develop and implement a strict cash flow plan”.

The DA further pointed out that the Revenue Budget indicated an inflated 99.6% collection rate while the past and current year’s collection rate is at an average of 87%.

During the debate, the ANC vehemently denied that the budget was unfunded. This was fuelled by the introduction of a forged Treasury document where two words were changed from the original, replacing the words “unfunded” and “unsustainable” with “funded” and “sustainable”.

The ANC then used its numbers, supplemented with late and suspicious support from the EFF, reversing their stance, to approve the budget.

The budget can be regarded as an insult to the JB Marks community paving the path to another wasted year. More of the collapse and deterioration of services can be expected.

The DA will continue its vigilance over the JB Marks finances and will continue to lay criminal charges in cases such as the forging of documents, theft, fraud and corruption, while demanding improved basic service delivery, to which all residents are entitled to.